The landmark Air India building at Mumbai’s Nariman Point has officially been transferred to the Maharashtra government in a Rs 1,601 crore deal, bringing to a close years of negotiations over one of the city’s most recognisable commercial properties.
According to PTI, the transfer agreement between Air India Assets Holding Limited (AIAHL) and the Maharashtra Public Works Department (PWD) was completed in the presence of Chief Minister Devendra Fadnavis at Mantralaya following a cabinet meeting.
Built in 1974 on reclaimed land owned by the state government, the 23-storey sea-facing tower has long been a defining feature of Mumbai’s skyline. Following Air India’s privatisation and acquisition by the Tata Group, the building was transferred to AIAHL along with other non-core assets, PTI reported.
Government offices to move into landmark property
The acquisition is expected to help the Maharashtra government address office space constraints near Mantralaya. PTI reported that the state plans to consolidate government offices within the building and reduce spending on rented premises.
According to The Indian Express, the property offers nearly 46,470 square metres of space close to the state secretariat. The publication noted that several government offices were shifted to rented locations across Mumbai after a major fire at Mantralaya in 2012, making office consolidation a key objective behind the acquisition.
From Air India headquarters to government complex
The building was designed by architect John Burgee and was among the locations affected during the 1993 Mumbai serial blasts. According to the Indian Express, Air India first attempted to sell the property in 2018 as part of an asset monetisation programme, but the process did not materialise.
PTI reported that the Maharashtra cabinet approved the purchase in November 2023, while the Centre granted final approval in March 2024.
Following the handover, Public Works Minister Shivendrasinh Bhosale directed officials to conduct a comprehensive structural audit before government departments are shifted to the premises.
Highlighting the significance of the acquisition, Bhosale said, according to PTI, “The transfer of the Air India building to the Maharashtra government is an important milestone in strengthening the state’s administrative infrastructure.”
He added that the property would be developed as “a model government complex with priority given to quality, sustainability and citizen convenience,” as quoted by PTI.
The minister also instructed officials to prioritise structural safety and expedite approvals for renovation and refurbishment works before the relocation of government offices.