Maharashtra Government Acquires Iconic Air India Building in Nariman Point

The Maharashtra government has finally taken possession of the iconic 22-storey Air India building in Nariman Point, Mumbai, after a three-year-long process. Chief Minister Devendra Fadnavis presided over the deed of surrender between the state's Public Works Department and Air India Assets Holding Ltd, which owns the building. Fadnavis stated, “It will not only save rent but also bring offices together.”

In 2023, the state cabinet had approved the plan to buy the Air India building to expand Mantralaya and house state government offices. The cabinet waived all unearned income, or transfer fees, and other penalties of Air India to expedite the transfer. The state government paid Rs 1,601 crore for the building, which provides 46,470 square metres of space for government offices.

The acquisition is expected to save the state around Rs 200 crore in annual rent if all the offices currently housed in private buildings are moved to the Air India building. However, officials noted that it will take more than six months to make the building usable. The lifts are not functioning, and a significant amount of interior work is required. The central air conditioning system is also non-functional due to the building’s age of over 50 years.

The Air India building, which opened on June 1, 1970, is a landmark in Mumbai’s skyline. Designed by Manhattan-based architect John Burgee, it was among the first centrally air-conditioned skyscrapers in India. The 23-story high-rise featured six state-of-the-art elevators with piped music and was the first building in India to install an escalator, transporting customers from the street to the main booking office.

Topped initially by an illuminated metal centaur (Air India’s trademark logo chosen by founder J R D Tata), the building stood as an unmistakable centrepiece of the Marine Drive skyline. It housed the famed Air India art collection, meticulously curated for decades. The building was also a target during the March 12, 1993, serial blasts when a car bomb exploded in the basement garage.

In 2022, Fadnavis, who was deputy chief minister at the time, met the then Civil Aviation Minister Jyotiraditya Scindia and urged him to give preference to the state government for the building. Apart from the state government, the Reserve Bank of India (RBI) was also reportedly interested in purchasing the building.

Fadnavis had previously stated that the state government was facing a space crunch to house government offices in Mantralaya and the annex building. “Met Union Minister Jyotiraditya Scindia in New Delhi and requested to give the Air India building in Mumbai to the state government. At present, even with the Mantralaya and an annex building, the space for government offices is insufficient, hence the demand for this building. We had given this proposal when I was Chief Minister,” Fadnavis tweeted.

The state had leased the sea-facing property to Air India in 1970 for a 99-year tenure. According to land transfer rules, the state revenue department was entitled to recover a transfer fee (or unearned income) during the transfer, which would have worked out to around an eighth of the market value. “Air India had then sought a waiver of this payment as a special case, which was approved,” an official explained.