Three years after the state cabinet approved the plan, the Maharashtra government formally took over the iconic Air India building in Nariman Point on Tuesday. Chief Minister Devendra Fadnavis presided over the deed of surrender between the state's Public Works Department and Air India Assets Holding Ltd, the building's owner.
Strategic Acquisition to Consolidate Government Offices
Fadnavis told TOI, "It will not only save rent but also bring offices together." In 2023, the state cabinet had cleared the plan to buy the Air India building to expand the Mantralaya complex and house state government offices. The cabinet also decided to waive all unearned income, transfer fees, and other penalties for Air India to facilitate a smooth transfer.
The state government paid Rs 1,601 crore for the building, acquiring 46,470 square metres of space across 22 storeys. Officials estimate that relocating all offices currently housed in private buildings to the Air India building will save around Rs 200 crore annually in rent.
Renovations Required Before Occupancy
However, officials noted that it will take more than six months to make the building usable. The lifts are non-functional, and substantial interior work is needed. The central air conditioning system is also out of order, as the building is over 50 years old. Opened on June 1, 1970, the building was designed by Manhattan-based architect John Burgee and was among India's first centrally air-conditioned skyscrapers. It featured six state-of-the-art elevators with piped music and was the first in India to install an escalator, connecting the street to the main booking office.
Historical Significance and Challenges
The building was originally topped with an illuminated metal centaur, Air India's trademark logo chosen by founder J.R.D. Tata, making it an unmistakable centrepiece of the Marine Drive skyline. It also housed the famed Air India art collection, meticulously curated over decades. The building was a target during the March 12, 1993, serial blasts, when a car bomb exploded in the basement garage.
In 2022, Fadnavis, then Deputy Chief Minister, met Union 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 reportedly interested in purchasing the building.
Fadnavis had previously stated that the state government was facing a space crunch for housing offices in Mantralaya and its annexe. He tweeted, "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. But in the meantime, that proposal was withdrawn. After that we corresponded again. Currently, both the Reserve Bank and Maharashtra government have demanded this space."
Lease and Transfer Details
Officials revealed that the state had leased the sea-facing property to Air India in 1970 for a 99-year tenure. Under land transfer rules, the state revenue department was entitled to recover a transfer fee (or unearned income) during the lease transfer, which would have amounted to roughly one-eighth of the market value. Air India sought a waiver of this payment as a special case, which was approved.
