BMC funds for MLAs under fire as Mumbai heads into crucial civic poll

Only ruling party MLAs and MPs benefit, while opposition legislators get “zilch”. Over 400 crore released this year alone

MUMBAI: As the countdown to elections for the country’s wealthiest municipal corporation begins, details are emerging on how the civic body allotted hundreds of crores of rupees to ruling party MLAs, MLCs and even MPs across two years, while denying opposition MLAs these funds, meant for development work in their constituencies. In the current financial year, the sum disbursed so far amounts to ₹418.01 crore.

BMC headquarters (Hindustan Times)

Details accessed by Hindustan Times under the Right To Information Act reveal that in February 2025, the BMC earmarked ₹17.5 crore for each of the city’s 36 MLAs - 27 ruling party MLAs, MLCs and MPs received these funds.

The ₹418.01 crore allotted this year went to 22 MLAs, three MLCs, and two MPs – Rajya Sabha MP Milind Deora and Union minister Piyush Goyal – from the BJP, Shiv Sena and NCP. Most of the allocations were either ₹17.50 crore or ₹12.15 crore each.

The issue of funds allocation has been a contentious one since March 2022, after which municipal elections have not been held, until now. Since there were no corporators to undertake civic work in the city, the BMC in February 2023 made budgetary provisions for funds to be used by MLAs and MPs. All proposals would be routed through Mumbai’s two guardian ministers.

While legislators from the ruling Mahayuti coalition swiftly secured approvals, opposition MLAs were allegedly thwarted, time and again. Opposition MLAs say this selective distribution is opaque and undemocratic, and are calling the scheme an “election fund”.

Congress MLA Amin Patel, who represents Mumbadevi constituency, said he had written seven letters to guardian minister Eknath Shinde seeking funds but received “zilch”. “I am proposing works worth ₹12.50 crore for beautification, pavement improvement, drainage repairs and toilet refurbishment in the Mumbadevi assembly constituency,” Patel had written on September 12, 2025.

Shiv Sena (UBT) leader Aaditya Thackeray accused the ruling coalition of “siphoning money from BMC coffers” under the guise of civic beautification. “And, yet, the roads are in bad shape, footpaths are broken, and even basic services like garbage collection are delayed. Apart from serving the ruling party, where are the BMC officers involved today?”

Thackeray makes another point. He said that MLAs traditionally rely on District Planning and Development Committee (DPDC) funds rather than BMC allocations. “BMC funds should be used for BMC works. There is a lot of frustration among opposition MLAs. They (ruling party MLAs) are dipping into BMC reserves, which are already in deficit, with no accountability,” alleged Thackeray.

Congress MLA Aslam Shaikh from Malad west, whose requests for funds have been ignored, remarked, “In the island city, the commissioner distributed funds to Rajya Sabha MP Milind Deora, who in turn gave it to Shinde’s candidates contesting the civic polls. When I was guardian minister, I allotted funds to all MLAs, even from the opposition. This is against democracy,” said Shaikh.

Former Congress corporator Mohsin Haider called the allocations an “election fund” for the ruling coalition. “We are a hundred-percent sure that not even 25% of the work has been done. Under the same budget head in 2024-25, ruling party MLAs looted nearly ₹1,100 crore. If a third-party audit is done, not even 25% of the work will be visible on the ground,” alleged Haider, who added, “No new work order should be issued until after the civic elections are held.”

Defending the policy, guardian minister for Mumbai suburban district, Ashish Shelar (MLA), said, “BMC works with their norms and the norms are clear. Many people from ruling and opposition parties, including former corporators, approached us. I am the authority for disbursal of DPDC funds, and they have been processed. Regarding BMC funds, it is for the BMC to follow norms. Just because an application has been submitted doesn’t mean it will be cleared.”

A senior civic official said the BMC had received no recommendations for opposition MLAs from guardian ministers and hence no such disbursements were made, with one exception. “From what I remember, only approximately ₹5 crore has been approved for Samajwadi Party MLA Abu Azmi.”

Civic activist Santosh Daundkar said the system has been grossly misused. “Mumbai has 227 municipal wards, and each corporator earlier received ₹60 lakh, while each Prabhag Samiti got ₹1 crore. That’s ₹1.6 crore per ward,” he explained.

“So why are such massive funds needed for MLAs? Earlier, in March 2022, ₹35 crore was announced for each MLAs. After a public outcry, this was later reduced to ₹17.5 crore. On top of that, these funds have been distributed exclusively to ruling party representatives,” he said.