Air India to sell Mumbai's iconic office to Maharashtra govt for Rs 1,600 crore

The Maharashtra government is set to become the new owner of the iconic Air India building at Nariman Point, Mumbai, following the state government's fresh offer of Rs 1,600 crore to acquire the property.

A senior minister confirmed the deal, saying that AI Assets Holding Ltd which owns the building has in principle agreed to give the building to the state government.

However, he clarified the Maharashtra government will complete the deal if the Centre vacates all offices and hands over 100 per cent possession.

Debt-ridden Air India had floated tenders for the sale of the 23-storey building, which stands on state government land, in 2018, but it failed to evoke a good response.

Back in 2018, Air India had approached the then state government and sought its participation in the tender.

"We did not participate in the tender process but the government wrote to Air India quoting a price of Rs 1,450 crore for the purchase. The actual price would have been around Rs 1,100 crore to Rs 1,200 crore since the government's dues from Air India are around Rs 300 crore," an official told PTI.

The Air India building is a landmark on Mumbai's skyline with the airline's trademark Centaur icon on its top.

The building served as the corporate headquarters of Air India till 2013.

In February 2013, Air India officially vacated the building as part of its asset-monetisation plan and shifted its corporate office to New Delhi.

The Air India building was one of the several high rises, including Express Towers and the Oberoi Sheraton that came up at Nariman Point, a 64-acre reclamation from the sea which was initiated as a project to ease the housing crisis in Mumbai but was later auctioned off in plots to various companies.

with PTI inputs