Skip to main content of main site

How BJP has presided over a systematic loot and bankruptcy of MCDs

Date 18 April 2017

How BJP has presided over a systematic loot and bankruptcy of MCDs

·        Manish Sisodia exposes Rs 1,000 crore scam in MCDs as shown in audit reports

Delhi Deputy Chief Minister and senior AAP leader Manish Sisodia on Tuesday exposed the systematic loot by the BJP in its ruled three MCDs since a decade.

Sisodia gave pointwise details of the financial irregularities in which the three MCDs have indulged running into hundreds of crores of rupees.

Point 1 –Every statutory audit of MCD has revealed large scams. The last audit conducted by its own Chief Auditor in 2011-12, showed financial irregularities adding to Rs 244 Crore (audit is conducted on specific issues and if seen in totality this scam is not less than Rs 1,000 crore), which hasn’t even been denied by MCDs. Essentially, an open loot.

The 2011-12 Chief Auditor report assessed financial irregularities adding up to Rs 244 crore for the three MCDs with the following breakdown, along with major sources of irregularities:

North MCD – Rs 115 crore (highlights are as follows)

·         Rs 55.8 Cr – “The department is yet to recover dues amounting to Rs 55.8 crores in respect of 71 cheques tendered towards payment of Advertisement &Theatre tax which were dishonoured” (Auditor’s comment). This is for the period June 2008-Feb 2011.

·         Rs 4 Cr - Loss due to non/short deposit of property tax on one commercial property (Unitech Amusement Park Ltd., Rohini)

·         Rs 4.6 Cr – Financial irregularities in construction of road under bridge (RUB) RUB at G.T. Road Industrial Area approaching towards Sawan Park (on Delhi-Ambala Line)

·         Rs 1.3 lakhs – Bogus issue of text books. 4720 text books were shown to have been issued to Municipal Primary School, Azadpur Village –II from Main Store, MeethaKuan, SabziMandi, Delhi, but these books were not found entered in the Stock book of recipient School.

East MCD – Rs 83 crores(highlights are as follows)

·         Temporary advances amounting to Rs 54.5 Cr drawn by the drawing &disbursing officers of different departments of the Zones during the years 1988-89 to 2011-12 have not been adjusted so far

·         Undue benefit to property owners/builders due to non-taking of demolition action on unauthorized constructions

·         2.913 acre of Municipal land in various Municipal Parks has been encroached upon

South MCD – Rs 50 crores(highlights are as follows)

·         Rs 22.6 Cr - Temporary advances drawn by the drawing & disbursing officers of different departments of the zones during the years 1998-99 to 2011-12 have not been adjusted so far

·         Rs 1 Cr - Loss due to non-allotment of rights for display of advertisements through kiosks

·         Rs 1 Cr – Loss  due to non-recovery of dues against dishonoured cheques for property tax

Similar damning stuff can also be found in the 2010-11 audit report of North DMC which states:

·         Rs 46 Cr - I.C.D.S. Programme was being funded by Delhi Government through Grants-in-aid. Delhi Government released the Grants-in-aid regularly till 1997 and partially till 2001 and thereafter stopped it with the result a huge amount of Rs 46 Cr had been accumulated as arrears upto 31.3.2011. But the Health department did not surrender the posts created for this project or utilize the services of the staff in other M.C.D. hospitals/dispensaries/M&CW Centers etc. Continuation of 198 No. of posts for such a long time (10 years) through its own resources is irregular.

In each of the above cases, the Chief Auditor’s report mentions multiple times when such irregularities were brought to the notice of MCD and it didn’t even receive a response. For example, in the case of ICDS project, the report says “The irregularity was brought to the notice of the department in June, 2009 and March, 2012, but no reply has been received (January, 2013).

Point 2 – Complete breakdown of internal or external accountability mechanisms in MCDs. Fair to say that MCDs have gone rogue and have shown zero commitment to accountability.

Following evidence backs this claim:

·         The 2011-12 Auditor’s report gives a tally of total 7,252 audit objections (North DMC - 3615, South DMC – 2399, East DMC – 1238) raised by successive Chief Auditors since 1967 (50 years!) but every single of them is lying unaddressed. The Auditor’s common complaint is:

…the departments concerned have not been following the instructions regarding

prompt and proper disposal of audit objections and queries. They are required

to furnish the necessary explanation, information, documents, records and other

particulars, as the case may be within a week of the receipt of communication

from Audit but Audit Inspection Reports are being treated in a very casual

manner by the Municipal Officers who neither reply promptly to the Audit

Objections nor discuss the circumstances in which the irregularities etc. have

been allowed to continue.

·         The 2011-12 Chief Auditor’s report also gives damning details of how the united MCD had not bothered to submit either their Monthly or Annual Account to the Chief Auditor’s office for the period 2004-05 to 2011-12. This is a mandatory requirement under Section 205 and 206 the DMC Act.

 

Make a Donation