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Chandigarh MP Manish Tewari takes on admn, questions decision to scrap ‘free water’ plan
Taking to X, Tewari wrote that the Chandigarh administration had skipped serving a show-cause notice to the municipal corporation (MC), as is mandated under Section 423 of the MC Act which was invoked by the administration to set aside the resolutions.
Days after UT administrator Banwarilal Purohit struck down the resolutions passed by the Aam Aadmi Party (AAP) and Congress councillors, which guaranteed free 20,000 litres of water to each household and free parking across the city, Member of Parliament (MP) Manish Tewari on Tuesday questioned the legality of the move.
Taking to X, Tewari wrote that the Chandigarh administration had skipped serving a show-cause notice to the municipal corporation (MC), as is mandated under Section 423 of the MC Act which was invoked by the administration to set aside the resolutions.
Tewari wrote: “The Chandigarh administration annulled the resolutions by evoking powers under Section 423 of the act. The act envisages a mandatory show-cause notice to the MC and no such notice was given to the best of my knowledge. The said notice has to be given to the House through the Mayor or the Commissioner. I am sure that MC house, when it meets, will take this aspect within its preview and take an appropriate view.”
Tewari also shared the extract of the order and Section 423 on social media, to support his statement.
“The Act says that a show-cause notice shall be issued, not may, and if there is any immediacy, which clearly is not in these cases, then the reasons for that immediacy must be recorded in writing. The annulment is therefore void ab-into for lack of following due process,” Tewari further said.
‘UT’s decisions unilateral, should abide by law’: Mayor
Mayor Kuldeep Kumar Dhalor, meanwhile, said, “Despite our repeated requests, the UT administrator didn’t give us time to present our proposals. The decision of rejecting the proposals is unilateral and he should have at least once listened to the elected representatives’ and people’s demands. If the decision does not stand legal ground, we will definitely discuss it in the next House meeting.”
UT had questioned financial viability of freebies
The Chandigarh administration, in a written response to the proposal for free water, had stated: “The proposal of free water is contrary to and violates the earlier approved project (24X7 water project) of the MC. The 24X7 water project is a time-bound activity and the resolution passed for free water is not a financially viable proposal. Hence, while exercising the powers conferred under Section 423 of Punjab Municipal Corporation Act, 1976 (as extended to the union territory of Chandigarh), the free water proposal is hereby annulled.”
While rejecting the free parking proposal, UT said, “Also, in the matter of parking, keeping in mind the cost, long-term nature of the project, return on investment on the same, to protect the financial interest of MC, and to ensure that the revenue of the organisation does not fall below the existing revenue, the new parking rates have been approved.”
AAP’s 2021 MC poll promise
The AAP had promised the two freebies to city residents before the 2021 MC elections but failed to bring the agenda to the House as it had not been able to post its councillor to the mayor’s chair for two years.
Soon after Dhalor took charge as the mayor – after a controversial election marred by poll rigging allegations against the Bharatiya Janata Party -- in February this year, the agenda for free water and free parking was brought to the House. It was passed with the support of Congress councillors on March 7, days before the Lok Sabha elections were notified. The proposals, though passed by the House, required the UT administrator’s nod.
The AAP and Congress had joined hands – as part of a pre-poll alliance INDIA bloc, to take on the BJP in the Lok Sabha elections. Tewari, who was the INDIA bloc candidate, had also included the promise of 20,000 litres of free water to each household every month in his poll manifesto, along with 300 units of free power to those with a monthly income of less than ₹20,000 and no new taxes.
Financial implications of the freebies
While explaining the financial implications of the free water proposal, MC officials had apprised UT administrator Purohit that the civic body spent ₹248 crore in the financial year 2022-23 on the maintenance of water supply and sewage system, but in return, MC could generate a revenue of only ₹129 crore, thus facing a deficit of ₹118 crore.
In 2023–24, MC spent ₹246 crore but could generate revenue of only ₹149 crore (deficit of ₹97crore again). Also in the present financial year, MC estimates to spend ₹317 crore on maintenance but is expecting only ₹160 crore revenue and thus is looking at a potential deficit of ₹157 crore. The MC further said that by providing 20,000 litres of water, free of cost, the total revenue loss per year will be ₹19.70 crore. The corporation had also clarified that most of its revenue comes from water tariff and property tax and in 2023-24, the corporation had generated ₹176 crore from water tariff only. From parking, MC is earning around ₹1.5 crore every month and free parking will add a revenue loss of ₹18 crore every year.
‘Blatant disregard for public engagement: MP on UT plan to increase power tariff
MP Tewari also questioned the UT’s plan of increasing the power tariff by an average of nearly 19.44% in the current fiscal. “The Chandigarh administration has unilaterally filed a petition to increase electricity rates without consulting the city’s residents or representatives. This decision, made without transparency or explanation, is a blatant affront to the people of Chandigarh and shows a disregard for public engagement. I encourage the people of Chandigarh to attend the public hearing and voice their concerns,” said Tewari on X.
While proposing a hike on June 7, UT had requested the Joint Electricity Regulatory Commission (JERC) to approve the revised tariff that is expected to generate a revenue of ₹1,059.03 crore. JERC is yet to approve a tariff hike for this year and will hold a public meeting on June 21 (Friday) for reviews from the public before making a decision. Last year, JERC had rejected the administration’s proposal of a 10% hike in the power tariff.
In 2022-23, the commission had approved an increase of 25 paisa in retail tariff up to 150 kWh (kilowatt-hour) per month. Before that, the last increase in the domestic and commercial electricity tariff was effected in 2018-2019. Notably, Congress also promised free 20,000 litres of water to every household every month in its Lok Sabha poll manifesto, along with 300 units of free power to those with monthly income less than ₹20,000 and no new taxes. With UT’s proposal, Congress’s promise of free electricity looks in limbo.
