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Chandigarh: Confusion within administration as Kataria transfers financial powers to MHA

Acting on the Centre’s directions, Kataria had issued the order on Tuesday, stripping heads of departments (HoDs), chief engineers, administrative secretaries, and even the chief secretary of their financial approval powers

Published on: Oct 2, 2025, 07:04:01 IST
By , Chandigarh
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UT administrator Gulab Chand Kataria’s move of withdrawing the financial powers of senior officers and transferring it to the Union ministry of home affairs (MHA) has sparked confusion within the administration. This has also had a direct impact on the functioning of the engineering department, with tender allotments now stalled until further clarification is received.

Until now, HoDs could approve works up to  ₹1.5 crore, chief engineers up to  ₹3 crore, administrative secretaries up to  ₹20 crore, the chief secretary up to  ₹50 crore, and the administrator up to  ₹100 crore. (HT File)
Until now, HoDs could approve works up to ₹1.5 crore, chief engineers up to ₹3 crore, administrative secretaries up to ₹20 crore, the chief secretary up to ₹50 crore, and the administrator up to ₹100 crore. (HT File)

Acting on the Centre’s directions, Kataria had issued the order on Tuesday, stripping heads of departments (HoDs), chief engineers, administrative secretaries, and even the chief secretary of their financial approval powers. Under the new system, final sanction for all plans, administrative approvals, expenditures (including works), public-private partnership (PPP) projects, and tenders will rest with the MHA.

Until now, HoDs could approve works up to 1.5 crore, chief engineers up to 3 crore, administrative secretaries up to 20 crore, the chief secretary up to 50 crore, and the administrator up to 100 crore. All these powers now stand revoked.

The order has left officers puzzled, with many questioning whether even minor works worth a few lakhs will now require clearance from Delhi. “Since Tuesday’s order, new projects have almost come to a halt. Without any financial powers at the HoD level, there is complete uncertainty. It is unclear whether small development works worth 5-10 lakh will also need the MHA’s nod,” said a junior official from the engineering department. On Wednesday, several tenders were opened but their allotment was deferred until further clarification arrives.

A senior officer in the UT administration admitted that confusion prevails and said that additional clarifications are expected soon.

Ongoing projects to continue

Meanwhile, the order specifies that ongoing projects and works for which work orders have already been issued will continue under the previous provisions. However, for all new schemes and tenders, MHA approval will be mandatory. Tenders that have been opened but not yet awarded will remain stalled.

Notably, there is no change in technical sanctioning powers—executive engineers (XENs) will continue to have approval authority up to 30 lakh, superintending engineers (SEs) up to 1.8 crore, and chief engineers will retain full technical powers. Similarly, the chief secretary will still be empowered to authorise direct purchases of up to 10 crore in emergency situations.