Fund Diversion Row Rocks Bhopal Municipal Corporation Council Meeting
· Free Press Journal
Bhopal (Madhya Pradesh): Questions over the alleged diversion of funds meant for economically weaker sections (EWS) from the 12 Number Stop housing project to the stalled Baghmugalia Housing for All (HFA) project triggered a controversy at the Bhopal Municipal Corporation (BMC) Council meeting.
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The issue came to the fore when the Mayor-in-Council (MiC) member concerned failed to provide clear answers on the fund transfer.
The issue was raised by leader of opposition (LoP) Shabista Zaki on Wednesday, who questioned the corporation's handling of funds meant for housing for economically weaker sections (EWS).
MiC member Chhaya Thakur admitted that corporation officials had failed to provide her with adequate information, saying, “Corporation officials do not listen to me, I have been frustrated for four years.”
Responding to Zaki's questions, Thakur could not provide the total cost of either project or details of the payments made to contractors. She later blamed corporation officials for withholding information and said she had been sidelined despite serving as a MiC member for four years.
Baghmugalia project stuck after contractor's failure
The Baghmugalia HFA project was launched in 2019, with the corporation issuing a work order to M/s Gulshan Rai Jain (Second) on Feb 4, 2019.
The project envisaged 768 housing units comprising 336 EWS, 288 LIG and 144 MIG units and it was scheduled for completion in 2022. However, the contractor sought extensions nearly four times and even then failed to complete the project.
The corporation eventually terminated the contract on Aug 29, 2024, citing violation of contractual conditions, and forfeited the firm's performance security.
New contractor used funds from another project
The BMC subsequently issued a work order to M/s Pelji Ratna Sorathia Infra Pvt Ltd on Sept 19, 2024, to complete the stalled Baghmugalia project. While the contractor was assigned 768 unfinished housing units, only 432 units were completed. According to corporation records, the expenditure was booked under Project No. 12, linked to the 12 Number Stop project.
EWS blocks surrendered, funds shifted
BMC records further indicate that two blocks meant for EWS beneficiaries under Project No. 12 were surrendered to the Urban Administration and Housing Department (UADD).
The funds allocated for these blocks were subsequently added to the Baghmugalia project's balance, effectively using Project No. 12 funds for construction at Baghmugalia.
BMC cites protests by allottees
MiC member Thakur said the decision was taken after Baghmugalia allottees repeatedly protested at the corporation headquarters, Collectorate and Chief Minister's residence. It claimed the protests were affecting the government's image and that the fund adjustment was made after approval from the Mayor-in-Council.
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