4 min readMumbaiUpdated: Apr 27, 2026 10:59 AM IST
A near two-fold difference in lease rates for adjacent shops at a BEST property in Kandivali West has come under scrutiny after a recent committee inspection also flagged long-vacant commercial properties in Mulund and Ghatkopar East, raising concerns over leasing practices.
The BEST committee visited commercial properties in Kandivali, Mulund and Ghatkopar, during which committee member Nitin Nandgaonkar told The Indian Express that the team observed significant disparities even within the same premises.
“At Kandivali, we saw four units in a single line at a prime location near the station. Two were leased at Rs 69 per sq ft, while two adjacent units were at Rs 149 per sq ft. We could not understand how such a difference exists for the same kind of space,” Nandgaonkar said.
He said the units had been allotted under different tenders, but maintained that the variation raised questions about the basis of rate determination. “There cannot be such wide differences without a clear rationale. This needs to be examined,” he added.
Nandgaonkar also pointed to the absence of periodic re-tendering in some cases. “Some properties have continued at the same rates for many years. If tenders are not refreshed and competitive bidding is not encouraged, revenue potential is automatically limited,” he said.
The committee member further highlighted the issue of underutilised assets. In Ghatkopar East, a commercial property of around 5,500 sq ft near the station has remained unused for years, while a 6,400 sq ft plot near Mulund check naka has been shut since 2019.
“If a property remains locked for years, it is a direct loss. Even at conservative estimates, such spaces could generate significant monthly revenue if properly utilised,” he said.
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According to him, inadequate upkeep and lack of basic infrastructure may also be affecting demand. “In several places, there is no proper maintenance, no electricity or water connections, and no effort to make the property usable. Without these basics, how will anyone take the space on rent?” he said.
He added that visibility of tenders could be another concern. “There has to be proper advertising and outreach. If people are not aware that a property is available, they will not come forward,” he said.
Nandgaonkar said the committee plans to raise these issues in its upcoming meeting. “We will be questioning the administration on why these gaps exist and what steps will be taken. There has to be accountability, and going forward, we want proper valuation and transparent processes,” he said.
The observations come against the backdrop of concerns already raised over BEST’s commercial leasing practices. A recent inspection by the committee had highlighted inconsistent pricing and unused plots across Kandivali, Ghatkopar and Mulund, bringing attention to potential revenue losses.
Earlier reports have also noted that BEST has been under pressure to increase its non-fare revenue, with the state government mandating that a significant portion of its income be generated from such sources.
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Officials have previously attributed lower lease rates to legacy agreements and older market benchmarks, indicating that some contracts were executed when prevailing rates were lower. They have also stated that lease rates may be reviewed.
However, the findings from the latest site visits suggest that inconsistencies in pricing and delays in utilisation persist, raising questions about how effectively corrective measures are being implemented.
With multiple committee members flagging similar concerns during inspections, the focus is now likely to shift to whether BEST undertakes a comprehensive review of its leasing processes and asset management practices in the coming months.
