BEST Cancels Cumballa Hill Quarters Leasing Tender amid Land Monetisation Row

Moneylife Digital Team 27 March 2026

Public Interest

The BrihanMumbai Electric Supply and Transport (BEST) has cancelled a key tender to lease the Cumballa Hill officers’ quarters, A and B wings, citing administrative reasons, in a development that comes amid growing scrutiny over land monetisation in south Mumbai. In October 2025, activists and civil society members flagged concerns over rising monetisation of public land in Mumbai, later submitting a white paper to the Maharashtra government seeking transparency and safeguards.

In a corrigendum issued under tender notice noPRO/CEC/DyCEC/47/2025 dated 28 July 2025, BEST announced that tender noCEC/DyCEC/63/2025 stands cancelled. The decision was confirmed by the chief engineer (civil) of the civic undertaking.

The tender pertained to the proposed leasing of residential quarters located in the upscale Malabar Hill division, an area that has recently been at the centre of a wider debate on the use of public utility land.

The cancellation comes against the backdrop of objections raised during a public hearing conducted earlier this month by the BrihanMumbai Municipal Corporation’s (BMC) development plan department.

The hearing was convened to consider a proposal seeking deletion of an existing reservation for electricity transmission and distribution facilities, along with BEST bus infrastructure, on a plot located on SK Barodawala Marg in D Ward.

Right to information (RTI) activist Anil Galgali, who participated in the hearing, had opposed the proposal, arguing that the land falls within a notified zone governed by the Prohibited Zone Act, 1923.

He raised concerns that any alteration in land use or removal of reservations for essential public utilities in such a sensitive area could have legal, security and infrastructure implications.

During the hearing, Mr Galgali emphasised that the site houses a receiving station that plays a critical role in maintaining electricity supply, particularly during emergencies such as floods or fires.

He stated that the facility supports power distribution to several key establishments in south Mumbai, including government offices, hospitals and other essential institutions. Any disruption or change in land use, he argued, could impact the restoration of power during outages.

The objections were submitted as part of the statutory process under the Maharashtra Regional and Town Planning (MRTP) Act, 1966, which mandates public consultation before any modification of reserved land use.

Mr Galgali also questioned the financial logic behind monetising such land, pointing out that the electricity department currently reports a surplus and that significant budgetary allocations have already been made for infrastructure.

He urged authorities to undertake a comprehensive public interest assessment before proceeding with any decision affecting critical utility infrastructure.

Part of a Larger Campaign

The latest development is seen as aligning with ongoing efforts by a group of activists, planners, civil society members and Moneylife Foundation which has been campaigning against the monetisation of public land earmarked for essential services.

While BEST has not provided detailed reasons beyond citing 'administrative grounds', the timing of the cancellation suggests that public objections and scrutiny may have influenced the decision.

Officials had not announced any immediate decision during the public hearing earlier, as the process involves reviewing all objections and suggestions before arriving at a final determination.

With the tender now cancelled, the future of the Cumballa Hill property and the proposed changes to land use remain uncertain, even as concerns continue over preservation of critical urban infrastructure.

In October 2025, a group of activists, planners and civil society members met at the Mumbai Press Club to discuss concerns regarding the increasing monetisation of public land in the city.

Following that meeting, a white paper titled “Citizens’ Concerns Against Privatisation of Public Land” was prepared and submitted to the Maharashtra government. The document calls for greater transparency, safeguards and a unified policy governing the use of public land. A related public petition has also been launched – End the Monetisation Madness: Public Land Belongs to the People!.

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