Unmasked: Mumbai’s parking mafia controls 60% of parking contracts

The BMC discovered rampant overcharging and illegal parking in designated no-parking zones after activist Santosh Daundkar first raised the alarm on April 25

MUMBAI: A recent sting operation, which exposed corrupt practices at the pay-and-park facility at Kala Ghoda in South Mumbai, has uncovered a parking mafia that extends across a number of civic wards in the city. According to the whistleblower, whose information prompted the undercover operation, an astonishing 60-70% of parking contracts under the Brihanmumbai Municipal Corporation (BMC) are controlled by a single individual.

Individuals who dare question the overcharging or the absence of receipts are subjected to verbal abuse and threats (Hindustan Times)

The operation that uncovered these alarming details was carried out at the parking facility outside the Jehangir Art Gallery. The attendant here attempted to overcharge senior civic officials who turned up incognito, and attempted to park their vehicles at the facility.

The BMC, which recently lodged a First Information Report (FIR) against the pay-and-park contractor, discovered rampant overcharging and illegal parking in designated no-parking zones after activist Santosh Daundkar first raised the alarm on April 25.

From ‘A’ ward to ‘T’ ward, Daundkar has detailed how these contractors, some with alleged criminal records, operate as a coordinated mafia, systematically exploiting the city’s parking system with impunity.

Daundkar, in his complaint letter dated April 25, 2025, to the BMC, stated, “This dominance isn’t the result of fair competition or efficiency. Rather, it’s a product of systemic corruption, supported by middlemen, complicit civic officials, and elected representatives, all working together in a deeply entrenched racket that has plagued the city for years.”

The letter adds, “Key sites like Kala Ghoda, Jehangir Art Gallery and Gateway of India are governed by dubious contracts categorized under ‘A’ and ‘B’. At these locations, parking attendants, often with criminal backgrounds, collect fees using handheld machines. However, the receipts they issue mention only the time of entry or exit, not the duration parked, making it easier to overcharge unsuspecting motorists.

“Moreover, these contractors deliberately avoid displaying BMC-mandated parking rate boards. They permit double-parking and exceed vehicle limits, leading to daily traffic jams and chaos in congested areas like Kala Ghoda. In several instances, car owners are even forced to surrender their keys, an outright violation of BMC norms. Yet, civic officials and police rarely intervene.”

Daundkar said that individuals who dare question the overcharging or the absence of receipts are subjected to verbal abuse and threats. “Organised commotion is often created to silence dissent. This creates not only a law-and-order concern but also subjects citizens to psychological harassment.”

A striking example took place on April 19, near Rhythm House at Kala Ghoda. Despite a clear ‘No Parking’ sign, the contractor stationed vehicles and collected parking fees openly—indicative of the police’s passive role in enabling these violations.

Explaining the parking mafia’s modus operandi, the whistleblower said the contractor consistently bids the highest amount during online tenders. “Once contracts are awarded, they often file for arbitration to halt operations, citing lower ward-level rates. They then collude with ward officials to extend contracts, altogether skirting the tendering process. Even when parking contracts held by women’s self-help groups expire, the mafia exploits proximity clauses to usurp adjacent spaces. These applications are swiftly approved by ward engineers. Shockingly, even if these illegal tenders are cancelled, the contractors receive their earnest money deposits (EMD) back, ensuring zero financial risk for them,” Daundkar told HT.

A civic official from ‘A’ ward, who led the sting operation at Kala Ghoda, revealed that 45 contractors were operating in this ward. “We registered FIRs at Jehangir Art Gallery and PB Gandhi Marg, where the agency operating was Yuva Berozgar Sahakari Sanstha Ltd. We’ve begun action against the others for violations such as not wearing uniforms and not displaying rate cards. A common complaint from citizens was overcharging—contractors were collecting ₹150 instead of the official ₹70,” the official said.

As part of the operation, three private cars were used, and women junior engineers from the ward went undercover, wearing scarves and backpacks to avoid being recognised by the attendants, who were familiar with civic officials.

Deputy municipal commissioner, Zone 1, Sangita Hasnale, also took part. She parked her car near the Bombay High Court and went incognito to observe the situation, first-hand.

“They were mostly parking vehicles in non-designated areas, where no official parking boards were displayed. In fact, in three lanes, ‘No Parking’ signs were deliberately covered. The attendants weren’t part of our approved list. We’ve penalised several for these violations but have registered an FIR under Section 420 of the IPC at the MRA Marg police station, against one contractor so far,” Hasnale said.