MUMBAI: The Maharashtra government is moving toward acquiring the historic Air India building in South Mumbai. The Finance Department has transferred ₹1,600 crore to the Public Works Department, initiating the process to finalize an agreement with Air India Assets Holding Limited.
A senior PWD official mentioned that a draft of the agreement will be reviewed to ensure accuracy and is expected to be signed within the next two weeks.
The Centre approved the building’s sale to Maharashtra for ₹1,601 crore in March 2024, and the state cabinet gave the go-ahead for the acquisition in November 2025.
Once the agreement is complete and the property transferred, the state plans to renovate the 23-story sea-facing structure and aims to make it operational within a year. Many offices currently in rented spaces will move to this new location, which is near the Mantralaya at Nariman Point.
This acquisition addresses the space shortage at the Mantralaya and its annex. Following a significant fire at the secretariat complex in 2012, numerous departments relocated across the city, leading to ongoing expenses for rented offices.
Officials estimate that the acquisition will provide approximately 46,470 square meters of office space near the state secretariat, thereby enhancing administrative efficiency.
The building, erected in 1974 on land leased by the state government to Air India, was designed by architect John Burgee and stands as a key landmark in Mumbai’s financial district.
Air India aimed to monetize this asset in 2018 after moving its headquarters to New Delhi. Initially seeking around ₹2,000 crore, the Maharashtra government proposed ₹1,400 crore. Other bidders included the Jawaharlal Nehru Port Authority and the Life Insurance Corporation of India, who submitted lower offers, but the process was stalled.
Negotiations resumed after the Eknath Shinde-led government took office, with the state eventually increasing its bid to ₹1,601 crore, while also waiving nearly ₹300 crore in dues related to unrealized income and land lease interest.
In 2022, former Deputy Chief Minister Devendra Fadnavis met with then Union Civil Aviation Minister Jyotiraditya Scindia to advocate for the state government’s priority in the sale process.
