Chief minister Prithviraj Chavan on Tuesday came down heavily on the functioning of the Shiv Sena-Bharatiya Janata Party-ruled Brihanmumbai Municipal Corporation (BMC).
Saying he was taking seriously the charges of corruption in the BMC, he said he would examine the reports he had sought on various issues and investigate the irregularities.
Chavan said the BMC had not presented its balance sheet, a statement of income and expenditure, for the past three years.
"This is serious. You cannot rule out the possibility of financial irregularities," he said. "We will take strong action once the reports are examined."
The BMC has been asked to prepare its balance sheet for 2007-08 within two months and for 2008-09 and 2009-10 by July-end 2011.
"The balance sheets will show whether there was financial misappropriation and, if yes, to what extent and who was responsible," he said.
Separate reports on the water supply system, variations in cost of various works and a controversial contract for a dumping ground were also sought.
Corporator and Congress legislator Amin Patel and Opposition Leader in the BMC Rajhans Singh, who is also a Congress MLA, had on Monday alleged that the cost of various contracts had risen by Rs 2,700 crore.
Regarding water supply, Chavan said: "There is enough water but citizens are under-supplied. There have been pipeline bursts, leaks and illegal connections. Why is the situation not improving? Why can't the BMC start a metering system?"
On the dumping ground contract, Chavan said: "There were charges of irregularities in the way the solid waste management contract was awarded."
He also said the BMC has been asked to stop distribution of flavored milk to students in civic schools. "This year, there were three cases of children falling ill after drinking the milk. A civic panel is probing these cases," Chavan said.
An enterprise resource planning system, a computerized process by which resources and functions are managed, is also under the scanner. "We will check whether it was required," Chavan said.
"The BMC has been ignoring its commitments. The quality of healthcare is deteriorating, roads are in poor condition and procurements are being made at the instance of the suppliers," he added.