Urban Development Minister Byrathi Suresh reprimands officers at progress review meeting

Mysuru: Urban Development Minister Byrathi Suresh reprimanded officials over alleged financial indiscipline at the Mysuru City Corporation (MCC) during a progress review meeting on Friday.

He was briefed on the current financial status, tax collection and other key issues before he questioned officials about the MCC’s financial mismanagement.

MCC Commissioner Shaikh Tanveer Asif revealed a grim financial picture, disclosing a Rs. 30 crore deficit over the past two financial years and a current demand of Rs. 220 crore, totalling Rs. 250 crore in liabilities. The MCC expects to generate Rs. 350 crore from Property Tax and water charges.

Additional revenue sources include trade licences, building licence fees and grants from both Central and State Governments, setting the MCC’s budget at around Rs. 1,000 crore. Ongoing projects are being funded through Government grants and City Corporation’s own resources, the Commissioner explained.

15th Finance Commission grants

A tender from the 2020-21 fiscal year is still active, with nine projects nearing completion. However, grants from the 15th Finance Commission for 2023-24 and 2024-25 are yet to be received. During a Council Meeting on Aug. 17, 2023, chaired by the Mayor, an action plan was approved and work has commenced, he said.

However, the Council’s tenure ended on Nov. 11, and the first instalment of the year’s grant — Rs. 26 crore received in July 2024 — was returned due to the absence of an active Council, leaving previous project bills unpaid, the officer told the Minister.

Consequently, projects that haven’t commenced are on hold. Approximately 80 percent of the 2024-25 projects have started, while 15 percent are yet to begin. These projects are now paused, the Commissioner said.

Excluding salaries and maintenance costs, the MCC has Rs. 70 crore to Rs.80 crore available for development projects. However, Rs. 64 crore worth of projects are already underway. Projects valued at Rs. 20 crore have been completed, but their bills are yet to be submitted to the accounts division. Meanwhile, bills worth Rs. 110 crore have been submitted but are awaiting payment, the Commissioner informed the Minister.

Adding to the financial strain, Vani Vilas Water Works pump operators and auto drivers haven’t been paid for four months. The MCC faces a dire financial crisis, needing Rs. 50 crore by March to cover wages for workers, security personnel, and maintenance costs for over 350 vehicles. In total, the MCC requires Rs. 450 crore, he added.

Revenue and debt challenges

Deputy Commissioner G. Lakshmikanth Reddy informed Byrathi Suresh that MCC collects Rs. 220 crore in taxes annually, with Rs. 120 crore allocated to maintenance at a monthly expense of Rs. 10 crore to Rs.12 crore. Even without initiating new projects, it would take four years to clear pending bills if Rs. 70 crore to Rs. 80 crore is used for this purpose.

Minister Byrathi Suresh expressed frustration over the ongoing financial woes since 2017 and criticised the lack of remedial action. In response, Shaikh Tanveer Asif revealed that from the financial years 2021 to 2024, there are unpaid bills worth Rs. 110 crore. Even if grants from the 2023-24 Finance Commission are received, an additional Rs. 300 crore would be required to settle old bills.

The Minister admonished the officials, questioning where the immediate funds would come from and accused them of poor financial discipline.

Legislators object to halting projects

MLAs G.T. Devegowda, T.S. Srivatsa and K. Harishgowda opposed halting projects that haven’t yet commenced due to the financial crisis. They argued that stopping previously inaugurated projects would raise public dissatisfaction.

Minister Byrathi Suresh acknowledged their concerns, stating that it would be inappropriate to stop projects with foundation stones already laid. He assured that under the Mahatma Gandhi Urban Development Scheme, Rs. 150 crore has been allocated, and pending projects should be included in this funding.

Additionally, Rs. 400 crore has been allocated for 55 kilometres of white-topping and Rs. 45 crore for the development of Kukkarahalli Lake and Dalvoy Lake. In total, these grants amount to approximately Rs. 1,200 crore.

The Minister assured that contractors would be paid in phases and urged MCC to submit proper proposals to navigate the financial crisis.