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.
