Maharashtra government acquires iconic Air India building in Mumbai for ₹1,601 crore

Maharashtra Chief Minister Devendra Fadnavis witnessed the exchange of a Memorandum of Understanding between the Government of Maharashtra (Public Works Department) and Air India Asset Holding Limited in Mumbai on Tuesday (June 2, 2026). State representative to the CM Sunetra Pawar is also present. Photo Credit: X/@CMOMaharashtra via ANI

For ₹ 1,601 crore, the Maharashtra government has formally acquired the iconic Air India building, a defining feature of Mumbai’s southern skyline known for its prime location overlooking the sea.

“The transfer of agreements between Air India Assets Holding Company and the State Public Works Department was completed in the presence of Chief Minister Devendra Fadnavis at the State Secretariat ‘Mantralaya’ after a Cabinet meeting on Tuesday (June 2, 2026),” an official statement said.

Built in 1974 on reclaimed state-owned land, the Air India Building, a 23-story sea-view commercial tower at Nariman Point in south Mumbai, has long been one of the city’s landmarks, known in the early days for drawing crowds for experiences like riding its elevator.

Following the privatization of Air India and its acquisition by the Tata Group, its ancillary assets, including this building, were transferred to Air India Assets Holding Limited (AIAHL). The Maharashtra government, facing an office space crunch in prime areas of south Mumbai near Mantralaya, has been in talks to acquire the property since at least 2021.

In November 2023, the state cabinet approved the purchase for ₹1,601 crore and decided to forgo around ₹298 crore in unrealized revenue and interest charges owed by AIAHL. The Center granted final approval for the transfer in March 2024.

The deal came close to completion in April this year when the finance department transferred ₹1,600 crore to the Public Works Department (PWD) to finalize deals to consolidate government offices in the over 45,000 sq m structure and reduce rental costs.

PWD Minister Shivendrasinh Bhosale, who was present at the transfer of ownership, said the state government had taken over the building after acquiring the property from AIAHL for ₹1,601 crore.

In a review meeting held after the handover, Minister Bhosale directed officials to conduct a comprehensive structural audit and carry out all necessary repairs before shifting government offices to the premises. He said interior renovations and other development work should begin only after structural safety issues are resolved.

All repairs and renovations should focus on quality and long-term sustainability, he stressed, ordering officials to ensure a high standard of electrical systems, fittings and other technical infrastructure.

The minister said that the main entrance of the building should be redesigned to reflect Maharashtra’s heritage and suggested involving leading architects and professional agencies in the project. He directed the officials to expedite the administrative approvals required for the renovation work and ensure timely completion of the project.

“The transfer of the Air India building to the Maharashtra government is an important milestone in strengthening the state’s administrative infrastructure. The building will be developed as a model government complex with priority on quality, sustainability and citizen convenience,” he said.

Deputy Chief Minister Sunetra Pawar, Tourism Minister Shambhuraj Desai, Public Works Minister Shivendrasinhraje Bhosale, Chief Secretary Rajesh Agrawal, Additional Chief Secretary (PWD) Milind Mhaiskar, Mumbai City Collector Anchal Goyal and Air India officials attended the event to mark the formal transfer of ownership.

Published – 03 Jun 2026 10:59 IST