Maharashtra government ready to buy Air India building for Rs 1,600 crore, ET Real Estate

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Mumbai: Deputy Chief Minister Devendra Fadnavis met the Union Civil Aviation Minister Jyotiraditya Scindia last year and urged them to give preference to the Government of Maharashtra in their attempt to sell the prestigious Air India build upon Nariman Point, Apart from the state, reserve Bank of India (RBI) building was said to be in the ground.

Confirming a possible deal, the senior minister said: “We are told that AI Assets Holding Ltd, which owns the building, has agreed in principle to give it to us. The finer details will be worked out but our The offer is conditional. We were told that the offices of the GST and the Income Tax Department are running from there. Some floors are with a state-owned company and one floor houses art collections and other items. We will go ahead with the deal only if we get Vacant possession will be given, we do not want to appoint a new agency to vacate the premises, it will be very difficult.”

Justifying the government’s push to acquire the property, the minister said: “If we get the building, we can save the rent that the state government is paying now. Many state offices are housed in private locations throughout the South. Mumbai And is spending a huge amount every month. ,

Fadnavis had also said on Tuesday that the state government would take over the building only if it was handed over empty. The first offer to buy the building was made during Fadnavis’s chief ministership.

Ministerial offices can be moved Air India A senior official said all the offices in the building and currently in private buildings could be accommodated in the ministry. “There are some plans to connect the ministry and the Air India building, but it is still at the discussion stage. ,

Air India officials had told the state government that according to them the cost of the building was more than Rs 2,000 crore. “The government needs to recover dues of around Rs 300 crore from Air India,” the state official said.

The official said that after Fadnavis started talks for the building during his chief ministership, the talks were resumed in 2021 under the MVA government, but no deal was finalised.

  • Published on April 5, 2023 at 09:30 AM IST

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