For Rs 1,601 crore, the Maharashtra government legally purchased the famous Air India building, which is a prominent component of the south Mumbai skyline due to its ideal location facing the sea.
Following a cabinet meeting on Tuesday, the agreements between Air India Assets Holding Company and the state Public Works Department were transferred in front of Chief Minister Devendra Fadnavis at the state secretariat "Mantralaya," according to an official announcement.
One of the city's symbols, the Air India building is a 23-story commercial skyscraper facing the sea at Nariman Point in south Mumbai. It was constructed in 1974 on reclaimed land owned by the state government. In its early years, it attracted large audiences for activities like riding its elevators.

Air India's non-core assets, including this building, were acquired by Air India Assets Holding Limited (AIAHL) after the airline was privatised and acquired by the Tata Group.
Due to a shortage of office space in desirable South Mumbai neighbourhoods close to Mantralaya, the Maharashtra government has been negotiating the purchase of the property since at least 2021.
The state cabinet decided to waive over Rs 298 crore in unrealised income and interest that AIAHL owes in November 2023 after approving the purchase for Rs 1,601 crore. In March 2024, the move received final approval from the Center.In April of this year, the Finance Department transferred Rs 1,600 crore to the Public Works Department (PWD) for concluding agreements, bringing the deal closer to completion. The goal is to minimise leasing costs and consolidate government offices in the approximately 45,000 square metre facility.

The state government acquired the building from AIAHL for Rs 1,601 crore, according to PWD Minister Shivendrasinh Bhosale, who was present at the ownership transfer.
Minister Bhosale instructed staff to carry out a thorough structural evaluation and make all required repairs prior to moving government offices to the location during a review meeting that followed the handover.
He stated that only when structural safety issues have been resolved should interior remodelling and other development projects start.The minister recommended incorporating renowned architects and specialised agencies in the project and stated that the building's main entrance should be rebuilt to reflect Maharashtra's legacy.
He gave officials instructions to expedite the administrative clearances needed for refurbishment work and guarantee the project's prompt completion.

"A significant step towards bolstering the state's administrative infrastructure is the transfer of the Air India facility to the Maharashtra government. Quality, sustainability, and citizen convenience will be prioritised in the building's development as a model government complex, he stated.
The event, which signified the official transfer of ownership, was attended by 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 representatives of Air India.