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Civic bodies struggle to pay contractors

Sanitation and road repair work may be hit on account of non-payment of dues to contractors.

delhi Updated: Jun 19, 2012 00:46 IST
HT Correspondent
HT Correspondent
Hindustan Times

Sanitation and road repair work may be hit on account of non-payment of dues to contractors.

The newly formed corporations are being unable to pay contractors an amount of more than Rs 500 crore, which may even lead to stoppage of work.

Leaders said that contractors that deal with sanitation and road work were calling them up everyday to remind them of the pending payments and threatening to stop work if money was not paid.

These contractors have not been paid for the last six months.

The corporations are also unable to pay old-age and widow pensions due to the lack of funds.

According to Subhash Arya, Leader of the House, South Delhi Municipal Corporation (SDMC), the lack of funds is due to non-transfer of funds from the Delhi government.

The government, which has to give funds to the three corporations under six heads, has not given them money since December.

Last week, Mayank Sharma, CA-cum-FA/SDMC, wrote a letter to the principal secretary asking for the release of funds as non-payment was preventing them from paying salaries, old-age pensions and contractor payments.

“In view of the problems, the first installment of the grants may please be released at the earliest possible. Apart from this, it is also requested to release at least Rs 10 crore out of the Rs 600 crore to meet the contractor liabilities,” wrote Sharma.

He said that the funds included grants for maintenance of school buildings, basic tax assignments, aid for resettlement colonies and transfer duties. “Transfer duties amount to Rs 400 crore for all three corporations from December 2011 to June this year. Without funds, the corporations are not being able to met out civic amenities to citizens,” Sharma said.

First Published: Jun 19, 2012 00:44 IST