Air India properties in Mumbai to go under hammer today

Air India, which is proposed to be put on the block, is auctioning residential properties in tony Mumbai neighbourhoods.

The electronic auction starts at 2 pm on Tuesday where one can bid for any or all of 14 flats in an Air India-owned residential building at Pali Hill, Bandra West, sources in the auctioneer, Kolkata-based state-owned MSTC Ltd, said.

It describes the property as in "very good location, in a prime residential locality famous for Bollywood personalities".

The reserve or the minimum bid price has been set at Rs 122.40 crore for the 2,030 square metre build up area.

There are other properties as well at equally enviable addresses of South Mumbai like an apartment on the eighth floor of the landmark Sterling Apartments at Peddar Road in the affluent Cumballa Hill neighbourhood.

Curiously, Air India is selling that apartment of Rs 2,033 square feet at a reserve price of Rs 18.64 crore, less than Rs 22 crore each at which it sold similar sized four flats in the same building to State Bank of India in 2015.

Also on offer is an apartment opposite Rajesh Khanna Park at Santacruz (West) that goes under the hammer at a minimum price of Rs 5.45 crore.

There are also about eight apartments for sale at Taurus Building in Malad and three flats at Jupiter Apartments at Altamount Road.

Air India possesses several Mumbai properties including apartments at prime locations which are legacy of the state-owned carrier's erstwhile headquarters in the financial capital.

Air India plans to raise a minimum Rs 175 crore from these sales, which would help the government cut a part of its enormous debt burden of Rs 50,000 crore, following which the Union Cabinet is expected to take a call its privatisation as per an earlier proposal of government's think-tank Niti Aayog which proposed total disinvestment.

Air India