3 days ago
BEST Member Seeks EOW Probe Into Chalo Bus Deal
A member of the BEST committee wants investigators to examine a deal with a private bus company called Chalo.
He says BEST gave support worth ₹50 crore for 100 electric buses.
In return, BEST receives a share of the company’s revenue.
Singh says the amount BEST has received so far, and may receive over the full contract, is too small compared with the subsidy.
He also wants investigators to check how the subsidy was transferred and why the company had six months before revenue sharing began.
He raised questions about bus parking and the use of BEST’s name and logo.
He has asked for an investigation and a review of the deal.
The articles do not report that an investigation has begun or that wrongdoing has been established.
BEST committee member Ajay Singh has asked Mumbai Police’s Economic Offences Wing to investigate BEST’s agreement with Chalo Bus.
Singh said BEST subsidized 100 electric buses at ₹50 lakh each, totaling ₹50 crore, while its contract share is 4% of company revenue.
According to Singh, BEST received about ₹2.07 crore in the first two years and is estimated to receive around ₹12 crore over 12 years.
He questioned the transfer of FAME scheme subsidies to Chalo, a six-month revenue-sharing holiday, and low-cost parking for 100 buses at Anik and Marol depots.
Singh also raised concerns about 40 Chalo-operated CNG buses bearing the BEST logo and reportedly parked overnight on roads, and called for a contract review and independent inquiry.
- Who
- BEST committee member Ajay Singh, BEST, and private operator Chalo Bus.
- What
- Singh sought an Economic Offences Wing investigation and review of the financial and operational terms of BEST’s agreement with Chalo Bus.
- Where
- Mumbai; the bus parking concerns include Anik and Marol depots and roads in Kharghar.
- When
- The agreement was signed in December 2022; revenue sharing reportedly began in June 2023. The article does not give the date of Singh’s request.
- Why
- Singh questioned whether BEST received adequate returns for its subsidy and other public resources and whether the agreement protected BEST’s interests.
Singh’s concerns
Agreement’s rationale
Subsidy and revenue return
Singh’s concerns
Singh questioned whether an estimated ₹12 crore in revenue sharing over 12 years adequately justified the ₹50 crore subsidy.
Agreement’s rationale
The article gives no response from Chalo Bus or BEST explaining the financial rationale for the subsidy or the expected benefits of the arrangement.
Contract terms and use of resources
Singh’s concerns
Singh called for scrutiny of the FAME subsidy transfer, the six-month revenue-sharing holiday, depot parking terms, and the use of BEST’s logo.
Agreement’s rationale
The article does not include a response from Chalo Bus or BEST addressing these concerns.
Key facts
- Electric buses
- 100 buses covered by the subsidy described by Singh.
- Subsidy
- ₹50 lakh per bus, or ₹50 crore in total, according to Singh.
- Revenue share
- BEST was to receive 4% of the company’s revenue under the agreement.
- Reported receipts
- About ₹2.07 crore in the first two years, according to Singh.
- Estimated 12-year receipts
- Around ₹12 crore, according to Singh.
- Revenue-sharing start
- Reportedly June 2023, after a six-month holiday period.
- Other buses cited
- Singh alleged that 40 Chalo-operated CNG buses bearing the BEST logo were parked overnight on roads.
Quotes
Ajay Singh
A member of the BEST committee who sought an EOW investigation into the Chalo Bus agreement.
“BEST is a public asset of Mumbaikars. Its interests must remain paramount in any agreement with a private company.”
freepressjournal.in
Sources
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