Mumbai: In a major development, the Brihanmumbai Electric Supply and Transport (BEST) undertaking cancelled its tender to lease residential flats on its premium Altamount Road plot in Mumbai, dealing a setback to its ongoing asset monetisation efforts.
The tender, which proposed leasing 35 flats, 15 from A wing and 20 from B wing, on a long-term basis, was expected to generate around Rs 263 crore for the cash-strapped transport body. However, according to a Hindustan Times report, officials confirmed that the tender was scrapped on March 25.
The plan involved converting the 2,475.07 sq m plot in the upscale Cumballa Hill area into a residential zone and leasing it to private parties. The move was part of BEST’s broader strategy to monetise its land assets, including spaces at bus depots across the city, to boost non-fare revenue.
However, the proposal faced strong opposition from citizen groups and BEST employees, who raised concerns over the increasing privatisation of public land. Activists had earlier flagged the issue, calling for greater transparency and safeguards, and had even submitted a white paper to the Maharashtra government in October 2025.
Premium Plot Partially Leased
Despite the cancellation of the tender, parts of the property have already been leased. According to the report, the C Wing of the same plot, comprising eight high-end flats and a receiving substation, has been leased for 30 years to Sikka Ports and Terminals Ltd, a wholly owned subsidiary of Reliance Industries.
The presence of a receiving substation on the plot has also raised concerns, as such infrastructure plays a critical role in electricity distribution and is typically reserved for essential services.
The controversy comes at a time when BEST is under pressure to improve its financial health. Maharashtra Chief Minister Devendra Fadnavis had earlier directed the undertaking to generate at least 40 per cent of its revenue through non-fare sources, reducing its dependence on government support.
With cumulative losses reportedly touching Rs 10,000 crore, BEST has been actively exploring ways to monetise its assets. However, the cancellation of the Altamount Road tender highlights the challenges in balancing financial recovery with public accountability and concerns over the use of civic land.
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