Mumbai's iconic Air India building is set to embark on a new chapter as the Maharashtra State cabinet greenlights its acquisition for a whopping ₹1601 crore.
Designed by the renowned architect John Burgee, this 22-story structure, standing tall in Nariman Point since 1974, served as Air India's headquarters until the airline moved its base to Delhi a decade ago.
The State government's approval comes with a generous gesture, waiving unearned income and penalties previously imposed on Air India.
Despite housing income tax and GST departments as tenants, the building remained under the Central government's ownership, managed by AI Assets Holding Limited.
This strategic sale aligns with the government's asset monetization initiative.
The acquisition not only signifies a change in ownership but also presents an opportunity for the Maharashtra government to address its office space needs.
Following a fire that led to the relocation of several departments outside the State headquarters, this move will enable the government to reclaim 46,470 square meters of prime space in the heart of Mumbai.
The shift is expected to save a significant ₹200 crore in rental expenses.
As the Maharashtra government eagerly anticipates the handover of the Air India building, it signals a transformative moment for the iconic structure and a practical solution for the state's administrative challenges.
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