BEST Gives Hansa Group An Ultimatum: Resume Bus Services Or Be Blacklisted

The Brihanmumbai Electricity Supply and Transport (BEST) has given a firm ultimatum to the Hansa Group of Companies to restart bus services immediately or risk being blacklisted, reported by Hindustan Times (HT). This announcement follows the Hansa Group's unexpected withdrawal of 280 wet-lease buses from Mumbai's roads on October 14.

These buses primarily served the western suburbs, linking residential areas and office spaces with bus stations and depots outside railway stations between Andheri and Malad. Some of these buses were intended for feeder routes from a Metro-3 station to the international airport. The sudden withdrawal has jeopardised these transport plans.

In a meeting on Monday, BEST officials sought an explanation from Hansa Group representatives for the shutdown over the weekend, despite the operator receiving Rs 2.50 crore each month. The meeting involved BEST General Manager Anil Diggikar and Hansa Group representatives.

During discussions, the Hansa Group requested permission to operate 250 buses, the original number agreed upon in their contract, as they had added an extra 30 buses later. They attributed the service withdrawal to increased maintenance costs, including the pressures of overcrowding on bus air-conditioning systems.

Diggikar informed the Hindustan Times that he had instructed Hansa to resume operations within two days, stating that failure to do so would lead to blacklisting. He also noted that BEST has already paid the operator their dues, less any penalties. Currently, BEST's operational fleet has decreased to below 3,000 buses, down from 3,211, including 1,044 buses owned by BEST.

Hansa Group representatives at the meeting declined to comment further on their discussions with BEST but acknowledged that several issues were under consideration. After ceasing operations, the 280 buses were parked at the Marol, Oshiwara, and Dindoshi depots.

According to reports, BEST owes Hansa Group nearly Rs 90 crore, which has been deducted as penalties over time. During the meeting, Hansa Group requested the release of this amount, stating that they had informed BEST of their challenges for the past two years.

It was also noted that while the buses were supposed to run on feeder routes, they had been used on trunk routes recently. The Hansa Group expressed that it would wait until Diwali for payment of its dues to facilitate putting the buses back on the road. The company has filed for bankruptcy with the National Company Law Tribunal.

BEST unions highlighted that around 1,000 to 1,200 Hansa Group staff are now in a difficult situation. Shashank Sharad Rao, General Secretary of the Sangharsh Kamgar Karmachari Union, met with BEST officials and stated, "If the wet-lease operator ceases operations, it is the administration's responsibility to ensure that employees retain their jobs and continue to receive salaries."

BEST officials reported that the wet-lease buses were in poor condition, and maintaining them would be challenging. Previously, another wet-lease operator withdrew, leaving over 100 buses at BEST depots, which the authorities threatened to auction if not reclaimed.