Mumbai: A BEST committee member has sought a probe by the Mumbai Police’s Economic Offences Wing (EOW) into the financial and operational terms of the agreement between BEST and ‘Chalo Bus’, questioning whether the undertaking received adequate financial returns against the public resources extended to the private operator.
₹50 Crore Subsidy Questioned
Raising the issue before the BEST committee, member Ajay Singh said BEST had provided a subsidy of ₹50 lakh per bus for 100 electric buses, amounting to ₹50 crore. In return, BEST was to receive 4 per cent of the company’s revenue under the agreement. Singh said BEST has received around ₹2.07 crore in the first two years and is estimated to receive around ₹12 crore over 12 years.
He questioned the economic rationale of providing ₹50 crore in subsidy when the projected revenue share over the entire 12-year period is substantially lower. “BEST is a public asset of Mumbaikars. Its interests must remain paramount in any agreement with a private company,” Singh said, alleging that there could be serious financial irregularities in the arrangement.
FAME Subsidy Transfer Flagged
Singh also questioned the transfer of the ₹50-lakh-per-bus subsidy received by BEST under the FAME scheme to Chalo and sought scrutiny of the process through which the decision was taken. He raised concerns over the six-month ‘holiday period’ granted to the company after the agreement was signed in December 2022. Revenue sharing reportedly began only from June 2023. Singh has sought details of the basis for the concession and its financial impact on BEST.
The committee member further questioned the provision of parking space for 100 electric buses at Anik and Marol depots at nominal charges. He also alleged that 40 CNG buses operated by Chalo, despite carrying the BEST logo, are parked overnight on roads in areas such as Kharghar. He said such parking could affect BEST’s public image and demanded strict enforcement of rules governing the use of the BEST logo and parking of buses.
Singh has called for an immediate review of the contract, including its revenue-sharing and operational terms, and an independent inquiry into the use of BEST’s public resources. He has specifically sought an EOW investigation to determine whether the agreement adequately protected BEST’s financial interests.
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