In order to understand the genesis of the magnetic τ-phase of MnAl alloy, which due to its multiphase nature is generally difficult to synthesize as a single-phase, we have synthesized it employing three different materials processing routes, namely, arc melting, mechanical alloying, and a combination of these two. Structural and microstructural characterizations employing X-ray diffraction and high resolution transmission electron microscopy demonstrate that irrespective of the material processing route employed, the formation of τ-MnAl phase was always accompanied by other non-magnetic phases, e.g., β-MnAl and γ-MnAl. However, the relative fraction of these phases was found to be dependent on the materials processing route and hence on the grain size of the parent phase. The arc melted alloy had the largest grain size and the highest fraction of the τ-MnAl phase, while the alloy prepared by mechanical alloying showed the smallest grain size and the lowest fraction of the magnetic phase. The largest value of Curie temperature, magnetic moment, coercivity and remanence were observed in the sample prepared by a combination of arc melting and mechanical alloying. Our results suggest that in addition to the τ-MnAl phase fraction the magnetic properties could be related to the density of structural defects.