BMC yet to collect Rs. 2,787cr arrears

The city’s civic body may be one of the richest in India, but it is reeling under the burden of arrears that add up to Rs. 2,787 crore till 2008.

The city’s civic body may be one of the richest in India, but it is reeling under the burden of arrears that add up to Rs. 2,787 crore till 2008. With that kind of money, the Brihanmumbai Municipal Corporation (BMC) can build 40 km of tunnels to add to the water supply network (estimated cost: Rs. 3,000 crore) or cover two-third of the cost of the Brimstowad project (estimated cost: Rs. 3,900 crore) and prevent flooding.

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The outstanding amount was disclosed in an internal audit report submitted by the chief auditor’s department to the standing committee on August 22.

The arrears, which include rent from leaseholders of civic property, penalties and excess payments from contractors and premiums from developers, reflect the BMC’s lackadaisical attitude when it comes to recovering the taxpayers’ money.

The report also pointed out irregularities such as taking loans when its own sources were sufficient to meet the expenditure.