MHA order ties Chandigarh Administration's hands, routine works grind to a halt

The UT Engineering Department has raised the red flag over the curtailment of its financial powers following a recent order by the Ministry of Home Affairs (MHA), warning that the move has effectively brought all development, repair and maintenance works across the city to a grinding halt.

In a communication to the UT Finance Secretary, the department has sought an urgent review of the Finance Department’s order dated September 30, which implemented the MHA’s September 19 directive mandating that all project proposals, including those up to Rs 100 crore, must now be routed through the MHA for appraisal and approval, instead of being cleared locally.

UT Finance Secretary Diprava Lakra, when contacted, said the Administration had no option but to comply with the MHA directive. “We have to implement the Centre’s directions and that is what we have done. Any relaxation can come only through fresh guidelines from the MHA,” he told The Tribune.

However, following objections raised by the Engineering Department, sources said the Finance Secretary has reached out to senior officials in the MHA for clarification on the scope of the new rules.

Citing Rule 12(2) of the Delegation of Financial Powers Rules (DFPR), 2024, the MHA has made it clear that such powers “cannot be re-delegated” to UT administrators or their departments. This has withdrawn the long-held powers of Chandigarh officers to grant administrative approvals or accept tenders locally.

The fallout has been immediate and far-reaching. The Engineering Department, responsible for maintaining Chandigarh’s core civic and institutional infrastructure —from roads, sewerage and government housing to landmark buildings — has been unable to proceed with even routine maintenance or whitewashing works without the MHA clearance.

The department argued that these everyday activities do not qualify as “projects” under the Ministry of Finance’s definition in its 2016 guidelines. As per the CPWD Maintenance Manual, day-to-day repairs, annual preventive maintenance, waterproofing, recarpeting, flooring or re-grassing are operational necessities, not capital projects requiring Central vetting.

“The execution of works is going to suffer, especially during the ongoing festive season when the demand for maintenance and whitewashing in government quarters peaks,” the department has warned. Even the upkeep of VVIP buildings, including the Punjab and Haryana Raj Bhawans, High Court, Secretariats, Vidhan Sabha, hospitals, colleges and sports complexes, besides the recently transferred V3 roads from the Municipal Corporation, stands jeopardised.

With the ban on awarding tenders, even already-approved works cannot move forward. Officials fear that budget utilisation could nosedive, throwing off expenditure targets for 2025-26.

The department’s note also recalled that under an earlier Administration order dated April 17, 2008, all works were to be executed as per CPWD manuals, with well-defined financial powers delegated to field officers. It has urged the Administration to restore or suitably review those powers to prevent administrative paralysis and ensure continuity in public service delivery.