Maharashtra Assembly: CAG report pulls up BMC over careless use of funds; flags non-sharing of COVID-19 expenditure records

Brihanmumbai Municipal Corporation (BMC) was mired in corruption from November 2019 to October 2022, Maharashtra Deputy Chief Minister Devendra Fadnavis said on Saturday as he tabled a CAG report in the Assembly.

The report looked at the award of contracts for projects worth ₹12,000 crore when the Covid-19 pandemic was at its peak, said many contracts were awarded without calling for tenders.

𝗡𝗼𝘁 𝗮𝗻 𝗼𝘃𝗲𝗿𝗮𝗹𝗹 𝗮𝘂𝗱𝗶𝘁, 𝗯𝘂𝘁 𝗼𝗳 𝘄𝗼𝗿𝗸𝘀 𝗼𝗳 ₹𝟭𝟮,𝟬𝟬𝟬 𝗰𝗿𝗼𝗿𝗲

“On October 31, 2022, we had declared a special CAG audit. Accordingly, CAG had conducted audits of nine departments. It is not an overall audit of BMC but that of works of Rs12,000 crore,” Fadnavis said.

As many as 20 projects worth Rs214 crore of two BMC departments had been undertaken without inviting tenders, Fadnavis said. BMC also did not formalise contracts with 64 contractors for projects worth Rs4,755 crore and thus cannot take action against them, he said. Besides, no third party audit has been done with regard to 13 projects worth ₹3,355 crore and, therefore, there is no mechanism to see how these works had been awarded, he said.

There is lack of transparency and poor planning, and the BMC has also not been careful in disbursing funds, the CAG said in its report.

𝗙𝗮𝗱𝗻𝗮𝘃𝗶𝘀 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝗹𝗼𝘀𝘀 𝗶𝗻 𝗗𝗮𝗵𝗶𝘀𝗮𝗿 𝗹𝗮𝗻𝗱, 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝘁𝗼 𝗦𝗔𝗣, 𝗕𝗠𝗖 𝗳𝗹𝗼𝘂𝘁𝗶𝗻𝗴 𝘁𝗲𝗻𝗱𝗲𝗿 𝗿𝘂𝗹𝗲𝘀

Fadnavis also said that 32,294 sq m of land in Dahisar was to be used for a playground, maternity home and garden purpose at Dahisar. According to the 1993 DP the plot was shown reserved. BMC in December 2011, had passed a resolution to acquire the said land. Eventually, valuation of the said land was fixed ₹349 cr. and the valuation was 716 percent more than the actual valuation. The said land is encroached Therefore ₹80 cr. will have to be spent on rehabilitation. CAG said BMC has not got any benefit from this project.

A contract of ₹159 crore was given to SAP without inviting tender, Fadnavis pointed out, adding that ₹37 crore was given to SAP for yearly maintenance which was not done. BMC also did not take any action at that time, he said.

The chief minister also said that with regard to the construction of two bridges over the Mahalaxmi Railway station, BMC had allowed contractors to benefit by as much as ₹27 crore and gave ₹14 crore more to contractors by flouting tender conditions. About 50 per cent of the work of these two bridges should have been finished before 2022 but only 10 per cent has been done till now, the CAG report said.

𝗡𝗼 𝗽𝗲𝗿𝗺𝗶𝘀𝘀𝗶𝗼𝗻 𝗶𝗻 𝗧𝘄𝗶𝗻 𝘁𝘂𝗻𝗻𝗲𝗹 𝗽𝗿𝗼𝗷𝗲𝗰𝘁 𝗼𝗻 𝗟𝗶𝗻𝗸 𝗿𝗼𝗮𝗱

The auditor also noticed that the civic body had not taken permission from the authorities of the Sanjay Gandhi National Park for the construction of twin tunnels on the Goregaon Mulund Link Road and the cost of construction rose from Rs4,500 crore to Rs6,322 crore.

The CAG also highlighted irregularities about KEM hospital, desilting work of Mithi river, the Malad pumping station and contracts of the solid waste management department.

𝗕𝗝𝗣 𝘁𝗿𝗶𝗲𝘀 𝘁𝗼 𝗰𝗼𝗿𝗻𝗲𝗿 𝗨𝗱𝗱𝗵𝗮𝘃 𝗦𝗲𝗻𝗮

“This was a trailer of Rs12,000 crore. If we had conducted a CAG audit of the entire expenditure more facts would come out,” Fadnavis said.

BJP MLA Amit Satam demanded the immediate registration of an FIR in this regard against he people concerned, but Fadnavis said action against the accused would be taken after the CAG report submitted in the Vidhan Sabha.

𝗔𝗮𝗱𝗶𝘁𝘆𝗮 𝗧𝗵𝗮𝗰𝗸𝗲𝗿𝗮𝘆 𝗵𝗶𝘁𝘀 𝗯𝗮𝗰𝗸

“This government should have conducted CAG audits of other municipal corporations, too. We and the people of Mumbai know what work we had done. That is why we had won the BMC election in the last 25 years. I welcome the CAG report. The government should take action,” Shiv Sena (UBT) leader Aaditya Thackeray said, adding that the state government should conduct a CAG inquiry in Thane, Navi Mumbai, Nagpur, and Pune municipality and added that “CM” stands for “corrupt man”.