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Under EU Regulation 261/2004, passengers are entitled to compensation for cancelled or heavily delayed flights when the delay is not caused by an extraordinary circumstance, such as bad weather or crew strikes. The flight must depart from an EU airport, operated by any airline, or it must arrive into an EU airport and be operated by an EU airline.
To claim compensation for a delay, you should write to Air India, and include all relevant details, such as:
You should acknowledge what you were provided (hotel accommodation, transport between airport and hotel, meal costs) and, if any of those costs were not covered, you should include receipts for those expenses you incurred.