E-Paper
LMC audit finds: Pvt agencies withhold ₹3.40 cr garbage charges
The discrepancy emerged when LMC officials cross-checked machine-generated collection records with actual bank deposits from January to October. The mismatch pointed to systematic under-reporting and non-deposit of funds collected from households, shops, institutions and offices.
Private sanitation agencies collected ₹3.40 crore as user charges from residents for door-to-door garbage collection but allegedly failed to deposit the money with the Lucknow Municipal Corporation. An internal audit has exposed the financial irregularities spanning multiple zones across the city.
The discrepancy emerged when LMC officials cross-checked machine-generated collection records with actual bank deposits from January to October. The mismatch pointed to systematic under-reporting and non-deposit of funds collected from households, shops, institutions and offices.
The largest irregularity has been linked to Lions Security Enviro, a private firm responsible for sanitation services in Zones 2, 5 and 8. The company allegedly collected over ₹3 crore as user charges over ten months without depositing the money with the municipal corporation. These three zones account for the bulk of the missing funds.
The probe has also flagged Lucknow Swachhta Abhiyan (LSA), a Hyderabad-based Ramky Group associate, operating in Zones 1, 3, 4, 6 and 7. Investigators allege that LSA failed to deposit the full amount of user charges collected from residents, with discrepancies estimated at around ₹40 lakh. The company has been served a notice seeking an explanation.
Environmental engineer of LMC Sanjeev Pradhan said notices have been issued to the defaulting companies, directing them to deposit the pending amounts immediately. He added that if the firms fail to comply, the amounts will be recovered from their sanitation bills, and criminal cases may also be registered if required.
Congress corporator Mukesh Singh Chauhan said contracts were allegedly awarded to these companies under pressure from the mayor and a group of corporators. “Lions Security Enviro had a poor performance record in the past and had been penalised earlier for lapses in cleanliness. Despite this, the company continued to secure major contracts,” he claimed.
