The Bombay High Court, on March 6, directed the Brihanmumbai Electric Supply and Transport (BEST) to settle the pending retirement dues of 127 former employees utilizing funds from a recent loan and grant. The court emphasized that the retiral benefits are a rightful entitlement, not a discretionary bounty from the employer.
This directive came after a prolonged delay in the payment of retirement benefits, which some employees have awaited since 2016. The court had previously mandated BEST to disburse these benefits in installments starting in May 2024 due to the “unconscionable nature of the delay.”
BEST, which operates under financial constraints, has reported considerable losses and depends on subsidies from the Municipal Corporation of Greater Mumbai (MCGM). Despite receiving the first installment of the required funds in December 2024, BEST struggled to meet its financial obligations to former employees.
In proceedings, BEST revealed the need for an additional ₹1,031 crore to clear 70% of the remaining dues. The transport body had sought financial assistance from MCGM, which was met with a legal debate over the corporation’s obligation to continuously fund BEST.
By January 2025, the court intervened again, ordering BEST to release the second installment of 35% by February 28, 2025. The court also expressed a hopeful sentiment toward MCGM, encouraging the municipal body to assist in this financial burden with a “humane heart.”
In a subsequent development, BEST’s counsel requested an extension on the payment deadline, disclosing that BEST had secured a ₹100 crore loan from a financial institution and received a ₹1,000 crore grant from MCGM, though it had initially requested ₹2,922 crore.
The court’s latest order sets clear deadlines for these payments: ₹100 crore from the loan must be disbursed by March 25, 2025, and another ₹100 crore from the MCGM grant by April 15, 2025. Additionally, BEST is instructed to reserve ₹400 crore from the MCGM grant for future retirement benefits.
