Funds, Karnal MC takes loan route to Rs 29-lakh loss

Parveen Arora

Tribune News Service

Karnal, December 13

An audit report has revealed that the Karnal Municipal Corporation paid a penalty of Rs 2 lakh in 2015 for delay in depositing first installment on a loan taken to purchase land for constructing its new office building. The report also found that despite having sufficient funds, the MC took Rs 3 crore to purchase the land, thereby, causing loss of Rs 27 lakh paid as interest on single installment.

Taking a serious note, MC Commissioner Priyanka Soni said, “The audit report of financial year 2015-16 highlighted this issue, which came to our notice recently. I have ordered an inquiry to Deputy Municipal Commissioner Rohtash Bishnoi to know the circumstances which delayed the installment and as to why the full amount was not deposited when the MC had the sufficient amount.”

She said that it was too early to comment on any kind of negligence, but the interest could have been averted by depositing the installment on time.

The MC took Rs 3 crore loan to purchase land from HUDA in Sector 12 in September 2014. Of the total amount, the MC deposited 25 per cent (Rs 76 lakh) at the time of purchase, while the remaining sum was to be deposited in four installments of Rs 84 lakh each with 12 per cent interest.

The MC failed to deposit the first installment in September 2015 leading to 3 per cent penalty for delay. It deposited Rs 86 lakh with late penalty of Rs 2 lakh in December 2015. The MC then deposited the remaining amount in January 2016.

THE DOWNTURN

• The MC took Rs 3 crore loan to purchase land from HUDA in Sector 12 in September 2014. 
• Of the total amount, the MC deposited 25 per cent ( Rs 76 lakh) at the time of purchase, while the remaining sum was to be deposited in four installments of Rs 84 lakh each with 12 per cent interest. 
• The MC failed to deposit the first installment leading to 3 per cent penalty. It deposited Rs 86 lakh with late penalty of Rs 2 lakh in December 2015.