The iconic Air India building in Mumbai will finally see a new owner.
Maharashtra State cabinet on Wednesday approved the acquisition of 22 storey building in Nariman Point area of Mumbai for ₹1601 crore. The State government has also decided to waive unearned income and certain penalties it had levied on Air India.
Designed by New York based architect John Burgee, the building was completed in 1974. It served as headquarters for Air India before it shifted its head office to Delhi over a decade ago.
The building, which has income tax and GST departments, as tenants was not part of the sale of the airline and has been retained by the Central government. Currently it is controlled by AI Assets Holding Limited, a Central government entity. The building sale forms part of asset monetisation exercise of the government.
The acquisition will help Maharashtra government to relocate some of its offices which it had to shift out of State headquarters due to a fire. Currently four departments- public health, medical education, water supply and rural development function outside Mantralaya, the State government headquarters.
According to State government release, it will get 46,470 square metres of space to house its departments and this will save ₹200 crore in rental expenses. The State wants AI Assets Holding Ltd to hand over the building free of encumbrances which means existing tenants would have to shift from the building.