The Brihanmumbai Electricity Supply and Transport (BEST) undertaking is facing scrutiny after committee members alleged that it has been leasing prime commercial spaces across Mumbai at significantly lower-than-market rates, despite mounting losses exceeding Rs 10,000 crore.
According to documents presented before the BEST Committee, the administration has rented out spaces at 19 locations—ranging from depots and bus stations to market areas and office premises—at prices between half and one-fifth of prevailing market rates. These documents, accessed by Hindustan Times, have prompted demands for a detailed review of the pricing strategy.
In Colaba, for instance, two shop units measuring 800–850 sq ft each have been offered at a reserve price of Rs 104 per sq ft, with the highest bid reaching Rs 125 per sq ft. However, market rentals in the area are estimated to range between Rs 400 and Rs 800 per sq ft. “Colaba is such a premium location that is frequented by tourists and shoppers. Renting out space at dirt cheap rates is quite shocking. We have demanded inspection of all these sites and reasons why the administration has offered it low rates,” said Sunil Ahir, a BEST Committee member from Shiv Sena (UBT).
Widespread Undervaluation Concerns
Committee members claim that over 30,000 sq ft of commercial space across locations such as Goregaon, Andheri, Mulund, Ghatkopar, Kandivali, Chembur, and Wadala has been leased below market benchmarks. In Mulund West, a 6,374 sq ft space was offered at Rs 38 per sq ft, far below the estimated market range of Rs 150–350 per sq ft. Similarly, in Ghatkopar and Kandivali, reserve prices were significantly lower than prevailing rates.
“At Kandivali West, there are four separate commercial spaces— two are of 359 sq ft, and the other two have an area of 373 sq ft. These are adjacent to the railway station, a busy market and a bus depot—the entire location is always buzzing. Despite this, the BEST administration had kept a reserved price of Rs 48 per sq ft, while average rental prices are Rs 200-400 per sq ft. The administration should come clear on the reasons for such a steep drop in the base price, especially when BEST is reeling under financial stress,” said Sachin Patil, another BEST Committee member.
Administration Defends Pricing
Officials, however, argue that the lower rates are due to the condition of the properties. “These are old buildings. Some of these [commercial] spaces mentioned are on the first floor, which might see lower footfall. Also, unlike well-furnished commercial properties that are offered by private developers, these are raw plots. Moreover, we have not paid property taxes to the BMC at these locations, so the party will not be able to get the necessary permissions, like water connection, etc., from the civic body,” said a BEST official.
Committee chairperson Trushna Vishwasrao has ordered site inspections and emphasised the need for financial sustainability. “My whole intention is to ensure that BEST becomes financially self-sufficient, and I’m working towards it. I have visited these two locations and shall be inspecting other sites as well in the coming days, along with fellow committee members,” she said.
The controversy comes as BEST seeks additional funding from the BMC and explores ways to boost non-fare revenue, including property monetisation and advertising, amid efforts to strengthen its financial position and expand services.
Source: Hindustan Times
