BEST Under Fire for Renting Prime Commercial Spaces at Below-Market Rates

Mumbai: The Brihamumbai Electricity Supply and Transport (BEST) undertaking is facing a new controversy as it allegedly undervalues its own assets, according to its newly elected committee members. At a time when BEST is grappling with accumulated losses exceeding ₹10,000 crore, the administration has been charging between half and one-fifth the prevailing market rates to rent commercial spaces at as many as 19 locations across Mumbai.

The administration has put up commercial spaces, including depots, bus stations, railway stations, busy market roads, residential quarters, and office spaces, for lease at significantly lower rates. For instance, in Colaba, where BEST has its headquarters, two shop spaces of 800–850 sq ft each are being leased at a reserve price of ₹104 per sq ft, with the highest bid reaching ₹125 per sq ft. Real estate agents, however, point out that rents for commercial spaces in the prime south Mumbai location can range between ₹400 and ₹800 per sq ft, or even higher.

BEST Committee members are questioning the logic behind these low rates, especially considering the premium location of these shops. Sunil Ahir, a BEST Committee member from Shiv Sena (UBT), expressed his concern: “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.”

The BEST administration has leased over 30,000 sq ft of space across Mumbai at rates lower than market benchmarks. These spaces are located in areas such as Colaba, Goregaon, Marol, Andheri West, Mulund West, Kandivali West, Chembur, Ghatkopar, Wadala, Mumbai Central, Vikhroli, and Malvani. The spaces have been leased to businesses such as shops, hotels, restaurants, cafes, halls for weddings and other celebrations, nursing homes, and even warehouses. This commercial leasing is part of BEST’s broader push to increase non-fare revenue, which also includes advertising and property monetisation.

For example, in Mulund West, BEST is leasing out a 6,374 sq ft commercial space at a reserve price of ₹38 per sq ft, with the highest bid at ₹51 per sq ft. Nearby plots around Mulund Check Naka were also offered at relatively low rates. Realtors estimate current rentals in Mulund West at ₹150–350 per sq ft, and about 10–15% lower near the check naka.

In Ghatkopar West, near Laxminarayan Temple lane, a 3,021 sq ft space was offered at a reserve price of ₹52 per sq ft and received a highest bid of ₹75 per sq ft. In Ghatkopar East, a 5,516 sq ft space was offered at ₹31 per sq ft, with a top bid of ₹50 per sq ft. Current market rentals are pegged at ₹450–600 per sq ft in Ghatkopar West, and slightly lower in the eastern suburb.

Sachin Patil, another BEST Committee member who visited these locations in Kandivali, pointed out the discrepancy: “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 ₹48 per sq ft, while average rental prices are ₹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.”

Even real estate agents were surprised by the low rates on offer. “Areas like Kandivali, Goregaon, and Andheri on its western side offer high demand. For premium locations, especially close to railway stations and BEST bus depots, there are clients who pay even up to ₹600-800 per sq ft,” said RP Singh, a real estate agent from the western suburbs.

BEST officials, however, defended the pricing, citing 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, requesting anonymity.

Sunil Ganacharya, a senior committee member from the BJP, raised concerns about unresolved dues: “What if those who rent out these spaces don’t vacate or pay rent until BEST pays these taxes?” An executive from a real estate consultancy firm, who didn’t want to be named, concurred that the quality of the space being offered makes a big difference in the price band. “However, the stark distinction in the price range is certainly surprising as it has a substantial gap,” they added.

BEST Committee chairperson Trushna Vishwasrao, who has ordered an inspection of the sites, visited locations in Wadala and Mumbai Central. She noted that many structures date back to the 1950s and said the prevailing rates may be reasonable given their condition. “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.

Vishwasrao also said she has requested deputy chief minister Eknath Shinde to waive off toll for BEST buses, along with certain charges paid to the Centre. Just days after the BMC presented its budget for FY 2026-27, Vishwasrao wrote a letter seeking ₹3,000 crore from the Brihanmumbai Municipal Corporation (BMC). The civic body had allotted a mere ₹1,000 crore as financial aid to the undertaking out of the ₹80,952.56-crore budget.

The demand for funds is aimed at bridging the financial gap, supporting fleet expansion—particularly the induction of electric buses—and ensuring they can cater to more daily passengers. BEST’s bus fleet has depleted to 2,700-odd buses, of which it owns just 249, while the rest are on wet lease.