Eknath Shinde-led department disburses ₹750 crore ahead of local body polls

The funds, meant for area development, have mostly gone to constituencies represented by MLAs from the ruling Mahayuti alliance, particularly those from the Shinde-led Shiv Sena.

Mumbai: A few months before local body elections across Maharashtra, the Urban Development Department (UDD), headed by deputy chief minister Eknath Shinde, has distributed more than ₹750 crore under two special schemes. These schemes give the urban development minister discretionary powers to allocate funds for basic amenities and special projects in the wards of urban local bodies, including municipal corporations, municipal councils, and nagar panchayats.

Mumbai, India - July 05, 2022: Chief Minister Eknath Shinde addresses the media during a press conference at BMC Disaster Management Department, BMC Headquarters, in Mumbai, India, on Tuesday, July 05, 2022. (Photo by Bhushan Koyande/HT Photo) (HT PHOTO)

The funds, meant for area development, have mostly gone to constituencies represented by MLAs from the ruling Mahayuti alliance, particularly those from the Shinde-led Shiv Sena.

Shinde has released the funds in the last six weeks ahead of the local body polls, expected to be held in December and January. Allocations range from ₹10 lakh to ₹3 crore for various works, including footpath construction, sewage upgrades, community halls, beautification of libraries and gymnasiums, among others.

In some cases, substantial amounts have also been sanctioned for repairing and constructing municipal council offices and Hindu crematoriums. The highest allocation— ₹61.5 crore—has gone to Thane, where Shinde serves as guardian minister, as well as to various municipal councils in Satara, his hometown.

In Mumbai too, constituencies held by Shiv Sena and BJP MLAs—including Chembur, Ghatkopar East, Colaba, Charkop, and Borivali—have received funds. Most of these constituencies were allocated around ₹4 crore each.

On Prime Minister Narendra Modi’s 75th birthday, Shinde had announced ₹394 crore for the Namo Udyan project, which envisions creating a garden named after the PM. Each municipal council and nagar panchayat will get ₹1 crore for developing such a garden, with funds already allocated for the ambitious project.

According to a BJP leader, while most of the UDD funds have gone to Shiv Sena leaders, BJP MLAs have also received a sizable share. “These funds are allocated based on the demands of the MLAs and are given to the concerned local bodies. However, they are often executed through contractors chosen by the elected representatives. Spending ahead of elections helps the leaders secure votes,” the leader said. When Shinde was chief minister in the previous Mahayuti government, UDD funds allocated to BJP MLAs were significantly lower compared to those given to Shiv Sena MLAs, the leader added.

A Shiv Sena leader admitted that areas represented by opposition MLAs have received little to no share of these funds.

Rais Shaikh, a Samajwadi Party MLA from Bhiwandi East, criticised the state government for being biased in distributing funds. “Ideally, backward areas like Bhiwandi should get more money, but opposition leaders are not releasing any funds. The special funds meant for area development and basic amenities go to MLAs and corporators from the ruling parties,” he said.

Rupesh Keer of Samarthan, an NGO that studies the state budget, said, “The funds allocated to ruling party MLAs and corporators will now be included in the supplementary budget to be tabled in the winter session of the legislature. However, that doesn’t mean the funds will wait until then to be released. They will be disbursed immediately to ensure political gains in the upcoming local body polls. This implies a diversion of funds from the heads that already had allocations in the current fiscal’s budget. Diverting funds from essential works to politically motivated projects is more significant than the new proposals aimed at pleasing party leaders.”

Keer added that unequal and biased fund distribution has been a trend over the past 8–10 years, which he called unjust to people in opposition constituencies.

Krishna Hegde, Shiv Sena spokesperson, said, “This has been happening since the time of Congress-led governments in the state. We allocate funds based on demands, and even opposition MLAs receive funds. Our MLAs and elected representatives have used the funds judiciously, which is why we have been elected with a thumping majority.”