State govt now owns iconic Air India building
- Quaid Najmi
- 10 hours ago
- 4 min read
Chief Minister’s office could be relocated to Air India building paving way for the Central Vista project

Mumbai: The Maharashtra government has finally become the new owner of the iconic white Air India Building at Nariman Point, with its landmark Centaur logo visible from long distances.
Three years after the cabinet granted approval in Nov. 2023, Chief Minister Devendra Fadnavis today presided over a ceremony for the registration of the purchase agreement of the 52-year-old tower that once housed the headquarters of the country’s national carrier Air India.
The government bought over the 23-storied building with a built-up area of 46,470 sq metres for Rs 1,601-cr and is now expected to shift several state administration offices there, saving a whopping Rs 200 cr per annum in rentals alone, said officials.
The government had also decided to waive off all unearned income and other penalties, totaling to around Rs. 250 cr. on Air India to speed up the building acquisition process.
New Chapter
The plot for the AI headquarters was allotted by the state government in 1970 on a 99-year lease. It was designed and built by a New York-based architect, John Burgee in 1974 – marking a new chapter in the development of Nariman Point into a swank central business district.
Standing at the western entry to Nariman Point Air India Building’s immediate neighbours are the 35-storied The Oberoi luxury hotel and the 25-storied Express Towers, built a few years prior to the Air India headquarters, all facing the picturesque Arabian Sea and serving as the starting point of the “Queen’s Necklace” stretching on to Malabar Hill.
The building - which served as a giant screen for some of the evening events of the inaugural Festival of France here in 1989 - was targeted by a massive terror bombing on March 12, 2993, but emerged virtually unscathed from the disaster.
Officials indicated that now the building will undergo a thorough structural audit to make it reusable, as certain interiors are not in proper shape, lifts and central air-conditioning are reportedly non-functional, while at least nine floors are fully vacant.
When the government first decided to monetise the building around eight years ago there were many who coveted it – Air India, LIC, JNPA and of course the state government – but finally Maharashtra bagged it.
Fadnavis, who had met the then Civil Aviation Minister Jyotiraditya Scindia had urged the Centre to consider the request as the state government was facing a huge space crunch.
After a fire engulfed Mantralaya in 2012, several departments like Rural Development, Public Health and Medical Education, Water Supply and Sanitation were shifted to the GT Hospital. These and certain other departments are likely to be shifted to the new acquisition within a year or so – barely a stone’s throw away from the state government’s seat of power, said an official.
The Centre had created a company, Air India Assets Holdings Ltd in 2018 to manage all properties owned by Air India, and the building still has some private and central government tenants.




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