BEST Withdraws Controversial Rs 263 Crore Altamount Road Quarters Lease Tender
In a significant reversal, the Brihanmumbai Electric Supply and Transport (BEST) undertaking has officially cancelled its plan to lease out staff quarters located at its prime Altamount Road plot in Mumbai. The tender, which was expected to fetch approximately Rs 263 crore in revenue, was formally withdrawn on March 25, as confirmed by a notice published on the BEST website.
Details of the Scrapped Lease Proposal
The ambitious proposal involved leasing a total of 35 flats situated on a 2,475 square meter plot at Cumballa Hill. The flats were distributed across two five-storey buildings: 15 units in Wing A and 20 units in Wing B. The plan aimed to open these residential quarters for third-party use, marking a shift from their original purpose as staff accommodations.
BEST had issued a public notice stating that the leasing initiative was intended to generate non-fare revenue, aligning with broader directives to diversify income sources. However, this move quickly became a focal point of contention among various stakeholders.
Internal Scrutiny and Fast-Tracked Approvals
The tender process itself came under intense scrutiny due to its unusually rapid progression within the administrative system. According to sources, the e-tender was issued in late July, and key approvals across multiple departments were completed within hours on the eve of a top official's retirement.
This expedited clearance process raised serious questions internally, with officials and activists expressing concerns about the transparency and procedural integrity of the decision-making. A BEST spokesperson did not respond to calls and messages when attempts were made to seek clarification on the matter.
Strong Opposition from Unions and Citizen Groups
Trade unions mounted strong objections to the lease plan, arguing that the plot—originally reserved for a critical power substation—could not be legally handed over to private parties for long-term residential use. The plot houses a key receiving substation that converts high-voltage electricity for local supply, serving essential areas including Malabar Hill, Nepeansea Road, Altamount Road, and Cumballa Hill.
Following the backlash, officials reportedly explored the possibility of changing the land reservation to enable leasing, but this did not alleviate concerns. Citizen groups also criticized the move, flagging issues related to the monetization of public land and demanding greater transparency in the disposal of public assets.
Background on Land Monetization and Policy Directives
The issue of land monetization gained prominence in October 2025 when activists submitted a white paper to the government, highlighting concerns over the disposal of public assets. Around the same period, Chief Minister Devendra Fadnavis directed BEST to raise at least 40% of its revenue from non-fare sources, underscoring the financial pressures facing the public utility.
It is noteworthy that a third wing within the same complex, comprising eight flats, had already been leased earlier as part of similar revenue-generation efforts. However, the land's designation for emergency utility use imposes limitations on redevelopment, adding another layer of complexity to the proposed lease.
The cancellation of the tender represents a significant development in the ongoing debate over public land use and revenue strategies for municipal utilities in Mumbai.
