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Pimpri-Chinchwad: The unified Nationalist Congress Party (NCP) under the reign of Ajit Pawar had a sole dominant stint at the Pimpri-Chinchwad Municipal Corporation (PCMC) from 2002 to 2017. At the end of the financial year 2016, PCMC had general and reserved funds amounting to Rs 6,862.89 Crores. However, a shocking revelation has been made that in the last eight years, when the civic body was under the rule of the Bharatiya Janata Party (BJP) and administrators, these reserve funds have decreased by Rs 1,968 Crores.
In the decades from the 1980s to the 2000s, PCMC was considered one of the richest civic bodies in Asia and India. However, in the past, the reputation of ‘rich municipal corporation' has somewhat declined. Currently, PCMC's deposits stand at Rs 4,894 crores -- a good number, but much less than what PCMC was known for.
NCP was formed in 1999 by former Maharashtra Chief Minister Sharad Pawar, and the control of the Pimpri-Chinchwad city was given by Sharad Pawar to his nephew Ajit Pawar. In 2002, NCP got power in the PCMC, and this stint continued for three terms until 2017. NCP had left the civic body with Rs 6,862.89; however, the BJP got power in 2017. The tenure continued till March 2022, but due to local body elections not happening, commissioners worked as administrators.
When the BJP formed a government in PCMC in 2017, the first mayor, Nitin Kalje, took the reins, and then Rahul Jadhav took the reins till March 2022. In 2022, IAS Rajesh Patil was the commissioner, and he took the role of administrator. In August 2022, IAS Shekhar Singh was transferred from the Satara District Collector Post as PCMC Commissioner and Administrator. In October 2025, Singh was transferred to Nashik Kumbh Mela as its commissioner, and former PCMC Commissioner Shravan Hardikar has returned to his role for the time being.
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Opposition and social activists in the city have blamed the BJP and the administrators for this situation. IAS Shekhar Singh, PCMC's longest-serving non-elected administrator, was accused of drowning PCMC in deteriorated financial conditions, and BJP corporators in power were also alleged to have committed corruption and financial wrongdoing within the city.
Despite this, PCMC maintains their financial situation is excellent. PCMC's Chief Accounts and Finance Officer said, "Currently, we have deposits of ₹ 4,894 crore in various banks. All deposits are safe. The corporation has a debt of ₹ 559 Crore 91 Lakh. Despite this, the corporation has an AA+ credit rating, and its financial situation is excellent."
Why Are These Deposits & Reserves Necessary?
Following the reduction over the last ten years, the deposits in various banks as of 2025 are Rs 4,894.78 Crore, comprising ₹ 2,362.41 Crore from the general fund and Rs 2,532 Crore 37 Lakh from the reserved fund. But in the last 10 years, PCMC earned Rs 3,172.04 crore in interest over the last ten years. Rs 1,338.53 crore of it was from the general fund, and Rs 1,833.87 crore was from the reserved fund.
So huge deposits in the reserve fund and general fund increase PCMC's income, which the civic body can deploy in developmental schemes for the city. But due to rising inflation and the amount of deposits getting decreased over the years, the handling of PCMC by the BJP and administrators is being questioned by the citizens of the city.
Rs 560 Crore Debt On The Civic Body
PCMC has taken loans of Rs 560 Crore for various projects. This includes a loan of Rs 159.91 Crore for the construction of the double-decker flyover at Nashik Phata, which has a 30-year term for repayment. Of this, Rs 91.90 Crore has been repaid. A loan of Rs 200 Crore was taken via municipal bonds for the Mula River Rejuvenation Project, with a term of 4 years. Of this, Rs 90 Crore has been repaid. A loan of Rs 200 Crore was taken via Green Bonds for the other beautification and developmental terms with a term of 5 years. Of this, Rs 13.50 Crore has been repaid. A total of Rs 364.51 Crore in loans remains to be repaid.
Deputy Chief Minister Ajit Pawar had proudly claimed during his recent visit to the city, claiming, “In my tenure at PCMC when NCP was in power, I didn't let the civic body have even Rs 1 in debts.”
Here are six key reasons why the situation is a cause for worry:
- Sharp decline in wealth: PCMC’s deposits have fallen by nearly ₹1,968 crore in ten years, indicating a major financial downturn.
- Rising debt burden: The corporation, once debt-free, now owes ₹560 crore, increasing long-term liabilities.
- Reduced income from interest: Lower deposits have significantly cut the interest income that sustained civic finances.
- Mismatch between budget and reserves: While the budget is growing, financial reserves are shrinking, showing poor fiscal balance.
- Allegations of corruption and mismanagement: Claims of misuse of funds and reckless spending under the BJP and administrative rule raise accountability concerns.
- Threat to future projects and public services: Declining reserves and rising debt may restrict future infrastructure and welfare initiatives.
