Rs 1,395-cr temporary advances to MCs not accounted for; issue serious: House Panel

The Committee on Local Bodies and Panchayati Raj Institutions of the Haryana Vidhan Sabha has expressed concern over outstanding temporary advances amounting to Rs 1,395.98 crore of urban local bodies for 2019-20, and commented that “it may lead to embezzlement”.

Temporary advances are given to employees for making urgent payments against local bodies’ work. In its 20th report for 2024-25, tabled in the House on March 18, the committee said: “A huge number of temporary advances to the tune of Rs 1,39,598.66 lakh (Rs 1,395.98 crore) for 2019-20 is outstanding for adjustment. This may lead to embezzlement, being serious in nature may be looked into and strict directions be issued to the district municipal commissioners/chief executive officers concerned to take necessary or prompt action for the adjustment of these temporary advances failing which accountability of the chief executive officers may also be fixed.”

Fix accountability

...directions be issued to the district municipal commissioners or chief executive officers concerned to take necessary or prompt action for the adjustment of these temporary advances failing which accountability of the chief executive officers may also be fixed.

--- Vidhan Sabha committee

The outstanding amount concerns the 10 municipal corporations, 18 municipal councils, and 34 municipal committees. The Local Audit Department, Haryana, in its report for 2019-20, pointed out that despite “repeated and clear-cut instructions issued by the Department of Urban Local Bodies, Haryana, as well as by the Local Audit Department for prompt adjustment of unadjusted advances, pending for many years, no concrete steps have been taken by the Municipal Administration to get it adjusted”.

The Vidhan Sabha panel is presently discussing the audit report. Of the total amount of Rs 1,395.98 crore, Rs 781.75 crore is pending in the Faridabad Municipal Corporation alone and Rs 403.86 crore in the Gurugram Municipal Corporation.

For 2018-19, the outstanding temporary advances stood at Rs 1,316.40 crore in urban local bodies. The panel has also taken a strong exception to records related to property tax, building plan applications, no dues certificates, etc., not being put up for audit for past many years.

“In the absence of a record, any serious financial irregularity may take place. The matter may be looked into and strict directions be issued to district municipal commissioners/chief executive officers and also fix the accountability of chief executive officers in this regard,” said the panel, headed by Deputy Speaker Krishan Lal Middha.

The panel in its recommendations have also pointed out that a large number of audit objections are outstanding as detailed in the respective Annual Audit Reports for settlement but no any serious effort is being made by the officers concerned to settle them.

“A special drive in all the municipalities be got carried out to settle these audit paras/audit requisition/ audit objections within a specified time period. The matter may be looked into and strict directions may be issued,” said the report.