Diversion of funds from urban development authorities to Punjab government challenged in High Court
An NGO has moved the High Court challenging the diversion of funds from various urban development bodies to the state government through the Greater Mohali Area Development Authority (GMADA).
The writ petition has been filed by the Public Action Committee, an NGO that mainly works for environment conservation.
The issue was highlighted by The Tribune on April 6.
The development comes over a week after the Punjab Urban Planning and Development Authority (PUDA) asked the urban development authorities to pool Rs 2,500 crore as a three-year loan, with GMADA acting as the nodal agency.
The move is being seen as an attempt by the state’s AAP government to fund its populist schemes ahead of the 2027 Assembly polls.
The bodies that were asked to shift the funds included the Greater Ludhiana Area Development Authority (GLADA), Jalandhar Development Authority (JDA), Patiala Development Authority (PDA) and the Bathinda Development Authority (BDA). While GLADA has been asked to give Rs 1,000 crore, which reportedly has already been transferred, Rs 450 crore has to be pooled by GMADA. The Patiala authority has asked to pool Rs 250 crore, BDA Rs 200 crore, JDA Rs 300 crore and PUDA Rs 150 crore. The hearing over the write petition is scheduled for April 10. A government official said that the funds might be diverted to fulfil the monthly stipend plan for women.
A GLADA staff member said since little time was given to transfer the funds, fixed deposits had to be withdrawn prematurely. An official with GMADA, however, maintained that the loan was needed for land acquisition projects. He said the funds were lying idle with various development authorities and had these not been used, GMADA would have ended up borrowing money from banks at an interest rate of 8.5 per cent.
“So GMADA will pay 7 per cent interest, same as FDR. There will be no loss to the authorities. It ensures financial prudence and compliance of statutory provisions,” said the official. Minister for Housing and Urban Development Hardeep Mundian could not be contacted for comments despite efforts.
