CAG report picks holes in utilisation of public markets by BMC

The Comptroller and Auditor General (CAG) of India has raised issues in the utilisation, reconstruction, and regulation of the public markets by the Brihanmumbai Municipal Corporation (BMC)

The Comptroller and Auditor General (CAG) of India has raised issues in the utilisation, reconstruction, and regulation of the public markets by the Brihanmumbai Municipal Corporation (BMC). The report, which was tabled in the legislature on Friday, said a significant area of the market buildings constructed under the accommodation reservation scheme were either not utilised or were lying vacant.

The audit scrutinised records for the period from 2017 to 2020. Scene at Crawford market. HT File Photo

The BMC constructs, maintains, and regulates public markets for sale of fruits, vegetables, meat etc. The audit scrutinised records for the period from 2017 to 2020.

According to the report, 21.57% of the total area in 103 markets in the city were lying vacant. The reasons included project affected persons allotted the space did not want it on the first or second floor of the market as it affected the business.

An inspection revealed that a new market at Andheri East comprising ground plus 10 floors had been lying unutilised since the date of its construction in July 2014. “The market department of the BMC had invited tenders five times [between May 2016 and September 2018] for renting out the building but in four tenders, there was no response and in the fifth one, the bids received were much lesser than the rental estimated in the tenders,” the report said.

The report also found that there was non-adherence to lease conditions in cases where markets were leased to private agencies. Of the 103 markets, nine were allotted on lease to private agencies for management and maintenance. Joint physical verification and test-check of records revealed breaches in lease conditions at Powai, Andheri East, and Malad, it said.

The CAG also said that improper maintenance of records related to outstanding dues led to short recoveries of ₹1.46 crore from market occupants. The CAG recommended that the BMC analyse the reasons and take steps to optimise the utilisation of the markets.