Maharashtra government takes over iconic Air India Building at Nariman Point for Rs 1,601 crore

Mumbai: The iconic Air India Building at Nariman Point, one of Mumbai's most recognisable landmarks, has formally come under the ownership of the Maharashtra government, marking the end of an era for a structure that once symbolised India's national aviation ambitions and the prominence of state-owned enterprises.

Chief Minister Devendra Fadnavis presided over the signing of the "Deed of Surrender" between the Maharashtra's Public Works Department and Air India Assets Holding Ltd, on Tuesday, completing the property transfer to the state government.

Deputy Chief Minister Sunetra Pawar, Public Works Minister Shivendrasinh Raje Bhosale and Tourism Minister Shambhuraj Desai were among those present at the ceremony.

The acquisition was completed for around Rs 1,601 crore. 

The Centre approved the sale of the property to the Maharashtra government in March 2024, while the state Cabinet gave its final clearance in November 2025.

Standing prominently along the Arabian Sea-facing Marine Drive, popularly known as the Queen's Necklace, the 23-storeyed tower has been a defining feature of Mumbai's skyline for more than five decades.

Located in the heart of Nariman Point, India's first central business district, the building once housed the headquarters of Air India and represented the prestige of the country's flagship carrier during the golden age of civil aviation.

The acquisition is significant not merely as a real-estate transaction but as a reflection of the changing economic and institutional landscape of Mumbai. 

Nariman Point, which emerged as India's premier business district in the 1970s and 1980s, has over the years witnessed the relocation of several corporate headquarters to newer commercial hubs such as Bandra-Kurla Complex, Lower Parel and Powai.

The takeover of the Air India Building by the state government signals a new chapter in the evolution of the district, with public administration increasingly occupying spaces once dominated by corporate India.

The Maharashtra government plans to use the building to accommodate various departments and offices currently functioning from rented premises across Mumbai.

Officials believe the move will not only reduce recurring rental expenditure but also help improve administrative efficiency by bringing several government offices closer to Mantralaya and the Vidhan Bhavan complex.

The tower is located just a short distance from Mantralaya, the New Administrative Building and the Vidhan Bhavan complex, making it strategically important for the state's administrative operations.

Constructed in 1974 on reclaimed land leased by the Maharashtra government to Air India, the building was designed by noted architect John Burgee of New York-based Johnson/Burgee Architects. Its distinctive silhouette overlooking the Arabian Sea made it one of the most photographed commercial structures in the country.

Air India vacated the building in 2013 as part of an asset-monetisation exercise and shifted its corporate headquarters to New Delhi. Since then, successive attempts to monetise the property witnessed limited success despite interest from several institutions.

Initially, Air India had sought around Rs 2,000 crore for the property, while the Maharashtra government offered Rs 1,400 crore. Other bidders included the Jawaharlal Nehru Port Authority and the Life Insurance Corporation of India, but the sale process remained stalled for several years.

The breakthrough came after the then Chief Minister Eknath Shinde proposed a revised offer of Rs 1,601 crore along with the waiver of nearly Rs 300 crore in dues linked to unrealised lease income and interest. Devendra Fadnavis, then serving as Deputy Chief Minister, had also met Union Civil Aviation Minister Jyotiraditya Scindia to seek preference for the Maharashtra government's bid.

For Mumbai, the transfer represents more than a change in ownership. It marks the transition of a landmark building from an era when state-owned enterprises symbolised India's economic aspirations to a new phase where the same structure is poised to become an integral part of Maharashtra's administrative infrastructure.