Centre approves transfer of Air India building to Maharashtra govt for ₹1,601 crore

The iconic Air India building in Mumbai's Nariman Point now has a new owner: the Government of Maharashtra.

The Government of India has approved the transfer of the Air India building belonging to the Air India Assets Holding Limited (AIAHL) to the Maharashtra government for ₹1,601 crore, the Department of Investment and Public Asset Management (DIPAM) said.

AIAHL is a central government entity under the Ministry of Civil Aviation. It was set up in 2019 to hold Air India's debt and non-core assets before selling the airline to Tata Group.

The 22-storey building, which was constructed in 1974, was designed by New York-based architect John Burgee. It was Air India's headquarters before the airline shifted its head office to New Delhi over a decade ago.

Presently, nine floors of the building are vacant, with eight floors occupied by the Income Tax Department and three by the GST Department.

The Maharashtra government will use the 5 lakh square feet space for housing different government departments, which it had to shift out of the state secretariat due to a fire.

Shifting to the erstwhile Air India headquarters will save the state exchequer ₹200 crore that is being spent on leasing space for different departments, the Maharashtra government had said in a statement on November 8.