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Municipal Finance

FGG accuses GHMC, HMWSSB of funds misuse

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The Hindu       25.05.2018  

FGG accuses GHMC, HMWSSB of funds misuse

GHMC commissioner charged with providing false assurance to High Court

The Forum for Good Governance (FGG), through a letter to the Chief Secretary on Thursday, has levelled allegations of misuse of public money, on GHMC and the water board.

Both the public offices have collected money running up to Rs. 120 crore on the promise of constructing rain water harvesting structures, and failed to fulfil the same, the letter alleged.

As per the Section 17(1) of WALTA Act, GHMC must insist on construction of rain water harvesting structures in all the residential premises having an area of not less than 200 square metres. In case the owner fails to construct one, the Act authorises GHMC to do it and recover the costs.

Section 17(2) of the same Act stipulates that permanent water and electricity connections be extended only after construction of the structures.

GHMC, taking advantage of the provisions, began to collect cost of the structures at the time of issuing building permissions, the letter mentioned. However, the Corporation has not taken up construction of the structures in individual houses, from the owners of which money was collected.

A public interest litigation filed in the High Court by FGG had a counter affidavit filed by the GHMC Commissioner B. Janardhan Reddy which stated that an action plan had been prepared for the rain water harvesting structures, and the amount collected from public was being deposited in the GHMC treasury under separate head of account.

“We have a reason to believe that just to close the PIL in High Court, the Commissioner gave wrong assurance to the court,” the letter read.

Though a few structures were constructed here and there, they are mostly in common places, rather than individual houses. There is no account for the money collected by GHMC, it alleged.

Meanwhile, an RTI application to the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) revealed that the Board had collected Rs. 20.65 crore for construction of the rain water harvesting structures from people who had applied for water supply connection.

Of this, only Rs. 88.13 lakh has been pent so far on establishment of the structures, with no account available for the balance amount, the letter signed by Secretary of FGG M. Padmanabha Reddy said, and pointed out that WALTA Act does not authorise water board to collect such an amount.

In a few cases, both GHMC and water board collected amounts for construction of the structures, but defaulted on the same.

“We have a reason to believe that about Rs. 120 crore collected by the GHMC and the water board has not been spent for the purpose for which it was collected from individuals.

It is a clear case of misuse of funds,” the letter stated, while requesting the Chief Secretary for an enquiry by appropriate agency.

We have a reason to believe that about Rs. 120 crore collected by the GHMC and the water board has not been spent for the purpose for which it was collected from individuals.

M. Padmanabha Reddy

Forum for Good Governance

 

GHMC earns Rs. 739 cr through DPMS

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The Hindu        07.12.2017  

GHMC earns Rs. 739 cr through DPMS

The GHMC has earned Rs. 739 crore by the end of October this year through the Development Permission Management System (DPMS).

The corporation has issued building permissions to 18,616 applicants, whose applications are complete in all respects as per rules.

A total of 22,246 applications were received online, as part of the system, and permissions were issued within a month, a statement from GHMC informed.

The system was launched in June 2016.

Merit award

GHMC is set to receive the SKOCH Merit Award in Delhi on December 20 for achieving transparency and accountability through online issuance of building permissions and occupancy certificates.

 

BBMP finds Rs. 213 cr. in its old accounts

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The Hindu       06.12.2017

BBMP finds Rs. 213 cr. in its old accounts

Civic body going through over 600 bank accounts it holds; ‘unspent amount’ used to clear bills

A financial spring cleaning exercise by the Bruhat Bengaluru Mahanagara Palike (BBMP) threw up a pleasant surprise for the cash-strapped civic body. At a time when it claims that its coffers are running low, it stumbled upon unspent money of over Rs. 200 crore in around 50 ‘dormant bank accounts’ recently.

The BBMP has over 630 accounts in various banks across the city. To bring in financial prudence into the system, the civic body decided to consolidate its accounts and close the unnecessary ones. In the process, the Chief Accounts Officer (CAO) and his staff found these dormant accounts with five-digit account numbers.

“When we began verifying the list of 630 accounts, we found some five-digit account numbers. Clearly, these were before core banking was adopted by the banks. We approached the respective banks and found that these accounts had unspent amount of Rs. 213 crore,” the source said.

This “unspent amount” was used by the BBMP to clear a part of the garbage bills and Bescom bills for street lights, and repay a part of the HUDCO loan.

It is likely that the BBMP will unearth more forgotten funds as it sifts through hundreds of accounts. Sources in the office of the CAO told The Hindu that another 35 dormant accounts were found on Saturday. However, they are yet to ascertain the amount deposited in them.


Total no. of ‘dormant accounts’ found: 85

Total no. of accounts held by BBMP: Over 630

No. of active accounts: 419

 
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