Free Press Journal

AI wants exemption from fees on lease transfer rights

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Mumbai: Air India wants the state’s revenue department to exempt it from paying fees on lease transfer rights. The 23-storeyed Air India building at Nariman Point is poised for sale, with the Jawaharlal Nehru Port Trust (JNPT) evincing interest in buying the property.

A senior bureaucrat from the revenue department, speaking to The Free Press Journal, said AI officials from Delhi, who had come for a meeting in Mumbai last week, had asked if they could be exempted from paying fees to the Maharashtra state government. “Exemption cannot be given, as it will be a loss for the state. The land value of the building is Rs 200 crore at present, and the sprawling property, spread over 220,00 square feet, is worth Rs 2,000 crore as per the current market value of that area. This translates to considerable revenue once the property is sold through lease transfer rights,” he added.

He further remarked, officials from the Mumbai city collectorate have written to the Mumbai Metropolitan Region Development Authority (MMRDA) for details on how much floor space index (FSI) has been given to Air India. The official added, “The Air India building has been given an FSI of 3 and if the MMRDA confirms the same, then based on this FSI, fees will be levied on them, which means around Rs 160 crore approximately. The Air India corporation has to spend only on lease transfer rights. And if the FSI is 1.33, which is granted by the government for island city then approximately Rs 60 crore will be the revenue gained by the state government.”