Large scale shell model calculations have been performed to study the excitation spectra of 132Sn and its nearest neighbours with a new cross-shell interaction constructed from two widely used interactions, sn100pn and CWG, of this mass region. A few of the two-body matrix elements have been tuned to reproduce the low-lying multiplet states of 132Sn. This is the first full scale shell model study of 132Sn energy spectra as well as transition probabilities. The excitation spectra for other nearest neighbours are reproduced reasonably well. The most important observable calculated are the E1 transition probabilities, which were so far beyond the scope of calculations with the existing interactions.