BEST committee seeks review of Chalo bus contracts, questions revenue sharing model

Representational image. File pic

The BEST committee on Tuesday sought a 'careful examination' into the various conditions and clauses of the Chalo buses that the BEST undertaking has been operating, and said that it was a loss-making plan with the private entity milking money from its ticket collection, bus trips, and even advertising revenue.

Raising a point of order over subject no 59, that had contract agreements of Chalo buses and the app, BEST committee member Sunil Ganacharya said that the company was into two contracts - operation of buses with the BEST logo and ticketing app.

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Ganacharya, who is the convenor of the BJP Mumbai Kamgar Aghadi (Workers' Front), raised questions and sought data from the undertaking about the status of various clauses.

"Firstly, the Chalo company is supposed to share 1.5 per cent of its revenue and 2.5 per cent share of BEST's investment with the undertaking. How much money has been shared from the beginning till March 2026?" he said.

"We also want to know how many buses are involved in the contract and from what period. What makes these buses is the details of routes, and since what period? The undertaking must give details of the status of these buses since the time they entered our fleet, where they are parked and all such details," he questioned.

"The undertaking has spent money to get these buses a stage carriage permit. We need to know how much money has been spent by the undertaking to get these permits till March 2026. In whose name is the permit issued, how many permits are currently active, and what is the fitness certificate date for each permit?"

Also, are all these buses EV buses? - How much money was spent on charging points for them, and in which depots have they been placed? How many of them and their status? Also, are all buses currently running properly?

He said that as per clause 4.1 of the agreement, the BEST undertaking had to invest a sum of Rs 50 lakh in the first 100 electric buses. "Has such a big investment been made? How did the BEST raise such a big amount? Details of the loan, if taken, and how the money has been shown in the BEST budget documents? We also need to know the details of the bank guarantee, if given by BEST to Chalo," he questioned.

"How much subsidy has been given to these electric buses under the electric bus guidelines? What is the fare per passenger of Chalo buses, and how is the money accounted for?

Also, for the first six months, the company did not deposit any amount with the BEST undertaking despite using our brand logo, our bus stops and our passengers," he asked.

"Also, what is the status of advertising revenue? I will discuss the details of the NCMC card and the agreements signed for ticketing machines at the next meeting," he added.

BEST committee chairperson Trushna Vishwasra o directed the administration to get the required details and concluded the meeting.