Mumbai: CAG cites shortcomings in BMC’s public markets for sell of fruits, vegetables & meat

The Comptroller & Auditor General (CAG) in its report ended March 31, 2021, has cited shortcomings in the construction, maintenance and regulation of public markets by the BrihanMumbai Municipal Corporation (BMC) for the sale of fruits, vegetables and meat. A significant area of the market building constructed under the Accommodation Reservation Scheme was either not utilized or was lying vacant. The Market department failed to take concrete action to evict the lessee despite a breach of conditions in the lease agreement. A market building, comprising ten floors, constructed by BMC was not being utilized for market services for more than six years.

According to CAG, the progress in redevelopment of existing dilapidated markets and rehabilitation of shop owners was poor. Improper maintenance of records related to outstanding dues and short recovery of various charges indicated inadequate internal controls and poor monitoring in the Market Department.

As of February 2021, MCGM had 195 municipal markets. Audit scrutinised (January 2021 and February 2021) the records of the BMC’s Market Department for the period 2017-2020, to assess the utilisation and redevelopment of markets and recovery of various charges from the allottees. Under the Accommodation Reservation Scheme (Scheme), plots reserved for the market are developed by private developers and handed over to BMC free of cost for which the developer is granted incentive floor space index. There were 103 such markets taken over under the Scheme.

Nearly 21.57 per cent of the market area was vacant out of which 20.10 per cent market area, though allotted to Project Affected Persons (PAPs), was not taken over by the PAPs on the ground that the allotment was done on the first and second floor of the market building which was not suitable for their business. Further, 22.18 per cent of the market area was allotted to Government departments and autonomous bodies and thus were being used for purposes other than market services.

‘’Thus, 43.75 per cent of the market area was either not used for market services or was lying vacant as of December 2021,’’ said CAG.

Out of 103 markets, nine markets were allotted on lease to private agencies for management and maintenance as Municipal Retail Markets, of which audit verified three markets. As per the agreement between the lessee and BMC, the lessee was permitted to allot the galas/shops/premises to individual/ organisation/corporate body or any other entity for the designated market services.

As of December 2021, there were 92 markets constructed by BMC, out of which in 62 markets having 11,351 existing shops/galas, 10,848 (96 per cent) were occupied. The balance 30 markets were under redevelopment.