Facing a severe financial crunch, the Chandigarh municipal corporation (MC) withdrew ₹6 crore from its employees’ pension fund on Thursday to settle pending electricity bills for the Kajauli Waterworks. This move, aimed at avoiding an ₹11 lakh penalty for late payment, has intensified concerns about the civic body’s precarious financial state.
The MC is burdened with escalating liabilities, including outstanding bills and committed payments totaling at least ₹100 crore in the fiscal year 2024-25. Salaries for regular and outsourced staff for February and March, contractor payments, and electricity bills remain unpaid as the corporation struggles to generate adequate revenue.
While the MC is actively pursuing the recovery of pending property tax dues and exploring internal revenue generation, it continues to rely heavily on additional grants from the UT administration to meet its financial obligations.
Senior deputy mayor Jasbir Singh Bunty voiced strong objections to the pension fund withdrawal and held discussions with senior accounts branch officer Samar Singh. Samar Singh explained that the funds were temporarily diverted to pay the Kajauli Waterworks bill and assured that the amount would be replenished once the grant-in-aid is received next month.
However, Bunty criticised the decision, asserting that the payment should be the responsibility of the UT administration, not the civic body. “The MC is responsible for maintenance and services, not for such payments of waterworks. The Chandigarh administration is placing undue financial pressure on us, making the MC financially weak,” he stated.
{{/usCountry}}However, Bunty criticised the decision, asserting that the payment should be the responsibility of the UT administration, not the civic body. “The MC is responsible for maintenance and services, not for such payments of waterworks. The Chandigarh administration is placing undue financial pressure on us, making the MC financially weak,” he stated.
{{/usCountry}}Bunty also highlighted that the UT administration has shifted the burden of streetlight bills—previously covered by them—onto the MC, further depleting its resources. “The administration wants to suppress the MC and push it towards bankruptcy. This is unacceptable and condemnable,” he added.