Maharashtra Government Buys Iconic Mumbai Air India Building for ₹1,601 Crore

The Maharashtra Government has taken possession of the Air India building at Nariman Point after acquiring the property from Air India Assets Holding Limited (AIAHL) for ₹1,601 crore, as per news reports.  

The transfer agreement was signed at Mantralaya on Tuesday in the presence of Chief Minister Devendra Fadnavis and other senior officials. 

The acquisition concludes a process that began several years ago as the state looked for additional office space near its administrative headquarters in south Mumbai. 

Addressing Space Constraints 

The Air India building is a 23-storey commercial tower built in 1974 on reclaimed land owned by the Maharashtra government. Situated at Nariman Point, the property provides approximately 46,470 square metres of office space. 

The state government plans to relocate a number of departments to the building. Several offices have been operating from rented premises across Mumbai for years, particularly after a fire at Mantralaya in 2012 led to the relocation of some departments. 

Background of the Deal 

Air India had listed the building for sale in 2018 as part of efforts to monetise assets. At the time, the airline was seeking around ₹2,000 crore for the property. The Maharashtra government initially submitted a lower bid before later revising its offer. 

After Air India's privatisation, the building came under AIAHL, which manages the airline's non-core assets. The Centre approved the transfer in 2024, while the state cabinet had earlier cleared the purchase and agreed to waive nearly ₹298 crore in unrealised income and interest dues related to the leased land. 

Next Steps 

Following the handover, Public Works Minister Shivendrasinhraje Bhosale directed officials to undertake a comprehensive structural audit before starting renovation work.  

Repair and refurbishment activities will be taken up only after the building's condition is assessed. 

Officials have also been asked to prepare plans for infrastructure upgrades, including electrical systems and other technical requirements. The government intends to complete the necessary work before shifting departments to the premises. 

Read More: ARAI Relaxes Export Certification Rules, Permits Use of Existing DVA Certificates Under Auto PLI Scheme! 

Conclusion 

With the transfer completed, the Air India building is to be used for government offices, bringing several departments closer to Mantralaya and reducing dependence on rented office space across Mumbai. 

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