Mira-Bhayandar ₹500 Crore Loan Row: Urban Development Department Seeks Detailed Account Before Approval

Mira-Bhayandar: The ongoing political tussle between the ruling BJP and Shiv Sena over the proposal to secure a private bank loan of approximately ₹500 crore to settle dues for cement-concrete road works in the Mira-Bhayandar Municipal Corporation (MBMC) has taken a new turn.

​Following allegations by Transport Minister Pratap Sarnaik that the ruling BJP planned to mortgage municipal properties for 30 years to secure the loan, the Maharashtra Urban Development Department (UDD) issued a letter to the municipal commissioner demanding a comprehensive explanation regarding the loan proposal. By seeking a detailed audit before granting final approval, the state government has placed the BJP in a tight spot.

​To address the chronic issue of potholes in Mira-Bhayandar, the municipal corporation decided to construct cement-concrete roads on a large scale. Citing a lack of funds to clear contractor dues for these projects, the MBMC put forward a proposal to raise capital via a private bank loan.

​While the BJP claimed that the state government had granted in-principle approval for the loan, local BJP MLA Narendra Mehta alleged that the Urban Development Department was deliberately withholding final sanction for the funds.

​Refuting the BJP's allegations, Transport Minister Pratap Sarnaik asserted that the proposed loan involved mortgaging key MBMC assets to a private bank for three decades. Sarnaik stated that the UDD withheld immediate approval because mortgaging civic assets for such an extended duration was detrimental to the municipal corporation's interests.

​Urban Development Department Seeks Clarification

​Against this backdrop, the Urban Development Department dispatched an official letter to the Municipal Commissioner on August 10, seeking a granular breakdown of the loan proposal.

​Key information demanded by the state includes

​1. Precise details on how the proposed loan amount will be deployed.

​2. Past Expenses, Clarification on whether the loan funds will be used to clear dues for previously completed road works.

​3.A progress report on earlier road projects, including their physical status, total expenditure, payments disbursed, and pending bills.

​4.Comprehensive details of road development works sanctioned both during the 4. 4.Administrator’s rule and thereafter including approved budgets vs. actual spending.

​5.Status reports on payments already made to contractors, outstanding dues, and incomplete works.

​With the state government officially stepping in to audit past expenditures and current road works before granting financial clearance, the ₹500 crore loan proposal is likely to face severe technical and administrative hurdles. Consequently, the ruling BJP now faces the immediate challenge of managing large-scale civic development projects amid a tightening financial crunch.

Published on: Thursday, August 13, 2026, 06:41 PM IST