Prime Mulund plot: BEST accused of favouring builder : Hindustan Times

MUMBAI: The debt-ridden Brihanmumbai Electric Supply and Transport (BEST) Undertaking has been accused of favouring a private developer.

It allowed a private builder t o develop projects wor t h Rs18 crore to Rs20 crore on its reserved plot admeasuring 1,479.66 square metres in Mulund (West). But, it failed to collect proper security deposit from the developer.

According to t he ag reement signed in 2007, Neptune Construction was to hand over 40% (592.36 square metres) builtup and an equivalent size of an open area to BEST.

The developer was required to pay Rs63lakh security deposit towards construction of the built-up area.

In the same year, the developer requested BEST to accept bank guarantee as security deposit instead of cash, which the administration agreed. As a result, the BEST lost the interest amount which they could have earned on security deposit.

“This clearly looks like ruthl ess privatisation of BEST reserved plot. With the increasing population, we need efficient public transport and for that we need space to accommodate the buses. The authorities should keep this in mind before striking land deals,” said Shirish Sukhatme, an architect.

To make up for the loss, the BEST has asked the private developer to deposit an additional Rs32 lakh as security deposit with Rs51 lakh interest, which it lost in eight years.

The experts said the amount is meagre for the land located in a prime area.

“A 1 BHK house in Mulund costs not less than Rs70 lakh. The land has been highly devalued,” said Pankaj Kapoor, managing director of Liases Foras, real estate research company.

Nayan Shah, director of Neptune Construction, said the plot belongs to them.

“Since it had the BEST reservation we were supposed to give them 40% of the built-up and open area, which we did. Besides, the security deposit towards construction cost of built-up area can be given in cash or bank guarantee, for which we have BEST general manager’s approval. We are still ready to pay Rs51 lakh interest to BEST.”

BEST assistant general manager (civil) SP Khachane said, “The request for bank guarantee was accepted by the then general manager. We are recovering the interest amount from the private developer.”