Mumbai: In a bid to ease its mounting financial crisis, the Brihanmumbai Electric Supply & Transport (BEST) Undertaking recently put 35 prime residential apartments on Altamount Road, long used as staff quarters, up for lease. The decision comes as the utility grapples with cumulative losses of Rs 9,500 crore.
A tender issued last week invites bids from companies seeking upscale housing for senior executives. The base price for leasing all 35 flats is fixed at Rs 263 crore for a 30-year term, extendable by another 30 years, reported Hindustan Times. Bids below this reserve price will be rejected. According to officials, the target clientele is corporates looking for residences in one of Mumbai’s most prestigious localities.
High-end Property Just Next To Mukesh Ambani's Antilia
The apartments, spread over two wings of a building situated next to Antilia, the home of Reliance Industries chairman Mukesh Ambani, include some still occupied by senior BEST officials, though most remain vacant. As per the tender, the premises can only be used for residential purposes, and subleasing is strictly prohibited. Lessees will bear responsibility for maintenance and repairs, with permission to modify interiors without increasing the built-up area.
The lease terms also allow for redevelopment if the Brihanmumbai Municipal Corporation (BMC) deems it necessary during the agreement period. However, reconstruction must adhere to the original sanctioned building plan and occupation certificate without exceeding the specified built-up area.
BEST's Recent Move Of Leasing Land Across 27 Depots In City
The move to monetise these high-value properties follows earlier BEST plans to lease out land across all 27 of its bus depots, aiming to raise at least Rs 10,000 crore. That proposal, however, drew strong criticism from activists and citizen groups concerned about the potential loss of public transport infrastructure.
Despite a bus fare hike in May intended to improve revenues, BEST’s financial troubles persist. Officials admit that the fare revision has done little to offset losses, prompting more aggressive asset monetisation.
A senior BEST official said, “We are looking for long-term partnerships with companies that value a premium address for their senior management. This is part of a larger plan to unlock value from our non-core assets without compromising service delivery,” as quoted by Hindustan Times.
The high-end apartments’ location, right in Mumbai’s billionaire row, ensures they will attract interest from large corporations. But with public scrutiny already high, how BEST manages this leasing process will be closely watched in the coming months.
