Air India sells flats worth 90 cr to SBI

Air India

Air India is surviving on a bailout package approved by the government in 2012. As part of its turnaround plans to reduce a debt burden of 40,000 crore, the grieving PSU plans to sell real estate assets worth Rs 5,000 crore to generate funds. Executing on the plans, AI has decided to sell four residential apartments in Mumbai to State Bank of India (SBI) for Rs. 90 crore.

The flats, each having a carpet area of 2033 sq ft situated at Sterling Apartments on Peddar Road in South Mumbai that hitherto housed top executives of the national carrier, will now be official residences of SBI top executives.

An AI official confirmed that the airline in August 2013 had invited bids for these flats through e-auctions and the Bank emerged as the highest bidder. “We have received a nod from the Cabinet as well as all requisite approvals to sell & transfer the rights on these flats to SBI,” said the senior Air India official.