Bhopal News: BMC Projects Sans RERA Registration Draw Penalties

Bhopal News: BMC Projects Sans RERA Registration Draw Penalties

Likewise, 104 shops were constructed in Nai Basti of Neelbad. Without getting registration in RERA, the municipal authorities auctioned and allotted. And for the violation, RERA imposed a penalty of Rs 1 Lakh. Under Bhauri project, 504 EWS and 331 LIG Houses were constructed and sold without registration in RERA and thereafter Rs 1 Lakh fine was slapped.

Rajan RaikwarUpdated: Tuesday, March 31, 2026, 11:52 PM IST
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Bhopal (Madhya Pradesh): The Real Estate Regulatory Authority (RERA) has penalised the Bhopal Municipal Corporation for failing to register various housing and commercial projects before selling them, in violation of mandatory norms.

In the audit of BMC for 2023-24, Local Fund Audit office has recommended that penalty amount imposed by RERA should be recovered from the negligent officials and deposited into the corporation fund.

The audit report says that under Neelbad Project, 60 LIG Houses were constructed and sold sans RERA registration following which the authority has imposed a penalty of Rs 1,25,000.

Likewise, 104 shops were constructed in Nai Basti of Neelbad. Without getting registration in RERA, the municipal authorities the shops were auctioned and allotted. And for the violation, RERA imposed a penalty of Rs 1 Lakh.

Under Bhauri project, 504 EWS and 331 LIG Houses were constructed and sold without registration in RERA and thereafter Rs 1 Lakh fine was slapped.

The report added that BMC hires passenger and commercial vehicles like JCB, Poklane machine from various firms to execute necessary municipal works. On examination of bills of firms supplying vehicles, various kind of shortcomings surfaced. Corporation signs one-year contract to hire the vehicles but even after the expiry of contract period, the civic body continues to avail the services of vehicles. In this respect, contract number BP023124 could be examined. In such case, the sanction of extending in contract period is expected, said Local Fund Audit report.

The report further pointed that daily rate is sanctioned for a rented dumper but the examination of the bills suggests that work is being taken from them on monthly basis.

Pending recovery, low tax collection

At the beginning of financial year 2023-24, total recovery, including arrears and current demand of Rs 1,321.38 crore, was pending. Against this, only Rs 503.25 crore was recovered, leaving Rs 818.13 crore outstanding by the end of the financial year. Examination of tax and rent records showed that revenue tax collection stood at 36.05%.

Shortcomings in maintenance of BMC vehicles

BMC operates a central workshop for repair of its vehicles. The audit report stated that within a month, some vehicles were brought repeatedly for repairs due to technical faults. Repeated repairs of the same vehicles indicate lapses and serious negligence by mechanics, supervisors and controlling officers at the central workshop.