INR 100 Crore Bhopal Municipal Corporation Payments Stuck Over ‘Passed For Payment’ Seal

Bhopal (Madhya Pradesh): Payments worth nearly Rs 100 crore in the Bhopal Municipal Corporation (BMC) have remained stalled for the past 10 months following an audit objection over the absence of a ‘Passed for Payment’ seal on files.

BMC commissioner Sanskriti Jain has now constituted a committee to determine whether the seal is mandatory and which section is responsible for affixing it.

The dispute has affected more than 5,000 files, delaying payments to contractors and vendors. Several vendors have stopped supplying goods and services to the BMC, citing prolonged delays of eight to 10 months in receiving their dues. Vendors said the payment freeze has disrupted their cash flow and increased their debt burden. Many have decided not to take up further work until their pending bills are cleared.

Accounts section says it does not have the seal

Sources said BMC files are audited before payments are processed. While files were earlier audited and returned to the accounts section, the audit section has now insisted that files carry the ‘Passed for Payment’ seal before being submitted for payment. The accounts section, however, has maintained that it does not possess the required stamp. Officials have apprised additional commissioner (finance) Varun Baderia of the issue.

Committee to examine payment files

The committee will examine the pending payments and meet vendors. The committee will scrutinise the relevant files and submit its report to the commissioner. A decision will subsequently be taken on whether the ‘Passed for Payment’ seal is mandatory and which department should affix it, bringing an end to the ongoing dispute that has held up payments worth around Rs 100 crore.