Bring civic body out of financial mess: Kataria

Punjab Governor and UT Administrator Gulab Chand Kataria today issued directions to bring the cash-strapped Municipal Corporation (MC) out of financial crisis.

The direction came as Mayor Harpreet Kaur Babla along with other 34 elected councillors and nine nominated councillors met him and raised various key issues pertaining to the larger public interest and welfare of MC employees. They urged him to strengthen the financial position of the civic body. Kataria assured them of full support of the UT Administration.

During the meeting, the Mayor informed the Administrator that the MC had been playing a crucial role in maintaining and developing the city’s infrastructure, ensuring sanitation, and providing essential public services on a no profit-no loss basis.

The Mayor said in an effort to improve its financial position, the MC undertook various measures, including providing temporary water connections outside lal dora/Phirni limits in 22 villages (estimated revenue Rs 25-30 crore), e-auction of advertisement rights on public utilities and connecting passages (estimated revenue Rs 25-30 crore), zoning and layout plan development in Mani Majra (estimated revenue Rs 150-200 crore), advertisement rights of roundabouts across the city (estimated revenue Rs 4-5 crore), increase in annual ground rent of municipal land used by cable operators, revision of fee for issuing birth and death certificates and revision of rental agreements for Verka-Vita booths.

To optimise resources, the MC has implemented several cost-cutting measures, including laying off 200 outsourced employees, reducing the number of vehicles hired for officials and reducing the cost of organising public events like Chrysanthemum Show-2024 and Rose Festival, making the latter a zero-budget event besides bringing down the expenses on entertainment and General House meetings.

The Mayor said the MC had urged the UT Administration to provide immediate financial assistance, citing reimbursement of Rs 160 crore spent on pensions of transferred employees and an additional Rs 40 crore per annum for future pension liabilities.

She demanded implementation of the 4th Delhi Finance Commission recommendations for fund transfer, and release of Rs 170 crore in additional funds for the financial year 2024-25 to meet liabilities and sustain municipal services. She said in view of the pressing financial challenges, they sought the urgent intervention of the Administration and the Government of India to ensure continued delivery of essential civic services.

During the meeting, Congress councillor Gurpreet Singh Gabi raised the issue of transfer of MC property from leasehold to freehold as there were hardly any takers for leasehold property in the city. He also demanded a dedicated fund for repair of roads. He opposed transfer of V3 roads to the Administration. “We pay Rs 100 crore as power bill for streetlights every year and build roads. However, no road tax collected by the Administration is given to the MC,” he said, while demanding either the transfer of the Registering and Licensing Authority to the civic body or sharing profit with the MC as all roads, lights, storm water maintenance was done by it.

AAP councillor Yogesh Dhingra said the maximum works in the city were carried out by the MC, but most of the profit-making departments were with the UT Administration. Due to shortage of funds, the MC failed to carry out development work in the city. Dhingra sought the MC’s share under the 4th Delhi Finance Commission. He also demanded that mayoral elections should be held with open voting by ‘show of hands’.