An RTI has revealed that the BMC has prematurely broken eight fixed deposits (FDs) totaling Rs. 2,360 crores six times over the past five years, with six of these breaks made to provide financial aid to BEST, a BMC undertaking.
The BMC, the richest municipal corporation in the country, currently holds over Rs. 80,000 crores in FDs across various banks. Meanwhile, an activist and former corporator has questioned how long the BMC will bear the financial burden of BEST, arguing that it's time for public transport to implement reforms to address its financial losses.
Details In The RTI Filed By Activist Anil Galgali
RTI activist Anil Galgali had sought details from the BMC regarding the early termination of FDs. In response, BMC's Deputy Chief Accountant (Revenue 2) provided a list of eight FDs prematurely broken. As per the BMC's reply on August 29, 2022, Rs. 645.20 crores was withdrawn from Union Bank of India to pay salaries, pensions, and bonuses to employees ahead of the Ganeshotsav festival.
Similarly, FD of Rs. 949.50 crores by the State Bank of India was liquidated on March 15 this year and given to Mumbai Metropolitan Region Development Authority (MMRDA) for the ongoing Metro projects in the city.
In August 2019, the BMC withdrew Rs. 250 crores, Rs 113 crores and Rs.115 crores from the State Bank of India to provide subsidies to BEST. On March 25, 2023, three FDs totalling Rs. 279.12 crores were withdrawn from the State Bank of India to continue funding subsidies to BEST. Galgali questioned, "How long will the BMC continue funding BEST? To save this public transport, the concerned authorities need to reduce expenses. The administrative costs are very high and should be cut down. Additionally, electricity theft must be stopped, and recovery should be pursued from major defaulters."
Cong Leader Ravi Raja Questions BMC
Ravi Raja, senior Congress leader and former Opposition leader of BMC said, "The mismanagement within BEST is contributing to its growing losses. There should be a limit to how much financial support the BMC provides for public transport. BEST has a land bank that could be developed and leased out to generate revenue. If the state and central governments fund metro projects, why can't they provide financial aid to BEST? Ravi Raja was also a member of the BEST committee for over a decade. Vinod Gholap of the Fight for Right Foundation said, "Currently, Mumbaikars can travel on BEST's AC buses for just Rs. 6. We need public transport accessible to those who cannot afford auto fares. The state government should take measures to save BEST."
