Unviable, 9 improvement trusts in Punjab to be closed, merged with municipalities

Rajmeet Singh

Chandigarh, October 6

Citing increasing financial liability, the government has decided to wind up at least nine improvement trusts in the first phase.

After getting approval from the Chief Minister, the Local Government Department has initiated the process to wind up the improvement trusts at Kotkapura, Khanna, Nangal, Samana, Malerkotla, Rajpura, Abohar, Kartarpur and Machhiwara. There are 30 improvements trusts under the Local Government Department.

More to meet similar fate

• There are 30 improvements trusts under the Local Govt Dept. The government plans to wind up at least 20 of these
• Over the years, several proposals have been made, but due to “political compulsions”, a decision could not be taken

The government plans to wind up at least 20 improvement trusts. Over the years, several proposals have been made to wind up a majority of these trusts. However, due to “political compulsions” of successive governments, a decision could not be taken. Local Bodies Minister Inderbir Singh Nijjar confirmed the government move to wind up the improvement trusts.

A senior government functionary said since most cities had not increased their municipal limits, one of the main purposes of these trusts had been defeated. A committee constituted by the government had recommended that at least 12 improvement trusts be wound up. However, after reviewing ongoing court cases and other related issues, it was decided to initially wind up nine trusts. “The department has been asked to study the financial health of the remaining 21 trusts,” said the functionary.

The improvement trusts will be merged with municipalities. The property, funds and dues of the trusts will be transferred to the municipalities.

During the previous Capt Amarinder Singh-led Congress government, a move was initiated by the Chief Minister’s office to dissolve these bodies. Navjot Singh Sidhu was then the Local Government Minister. During the SAD-BJP rule in 2012, a decision to wind up all improvement trusts was shelved.

In the Punjab Regional and Town Planning and Development Act, 1995, there is a mention of dissolution of improvement trusts and transfer of assets and liabilities to municipalities.

An official said the Punjab Town Improvement Act, 1922 — that governed the functioning of the improvement trusts — seized to exist after the 1995 Act came into being.

Govt mulls shutting 12 civic bodies

With some MCs and nagar panchayats in dire fiscal straits, the govt is contemplating winding up at least 12 civic bodies. No final decision has, however, been taken so far