The Santacruz bus depot plot, measuring 13,00 sq metre, was given on lease for just Rs 50 crore.
The plot is in a prime location on SV Road.
The Brihanmumbai Electricity Supply and Transport Undertaking awarded the lease to Indiabulls on Thursday. Wadhwa Developers and Kanakia were among the developers who had bid for the project. As per the policy framed by the authorities, the winning bidder can commercially exploit 30 per cent of the BEST bus depot.
Ravi Raja, member, BEST committee, said, “I feel the price at which the bus depot has been leased is way too less. The authorities shouldn’t go ahead with the deal. The base price was kept at Rs 300 crore. It has gone for pittance considering the location of the bus depot.” According to him, the BEST should have earned at least Rs 150 crore from the deal.
The plot houses staff quarters for 450. The developer will have to demolish the existing quarters and construct 600 new quarters. The developer will also build infrastructure facilities such as a canteen, a repair division, depot office. These facilities will be provided free of cost to the BEST.
Pankaj Kapur, managing director of Liasas Foras, a leding research firm said: “It is a good deal. Considering the location, the developer can expect good returns and even the BEST will gain from it.”
This is the fourth bus depot that has been sold by the BEST. The earlier three were at Oshiwara, Seven Bungalows and Kurla.
After the redevelopment of 7.7-acre Kurla bus depot plot, Mumbai-based Kanakia group is also developing Mahim bus station.
Sources said Delhi-based Parsvnath Group, which had originally bagged the project for Rs 32.32 crore in 2007 will hand over the redevelopment rights to Kanakia Spaces for a price exceeding Rs 50 crore.