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Civic Chief Presents Financial Facts; Counters Corruption Allegations in BMC Projects

During the press conference, Chahal provided detailed information regarding the Fixed Deposits (FDs) and the financial state of the BMC. He addressed the allegations of financial irregularities by highlighting specific expenditures.

Civic Chief Presents Financial Facts; Counters Corruption Allegations in BMC Projects
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A press conference was conducted by Iqbal Singh Chahal, the civic chief and administrator, in response to allegations of corruption and misgovernance in several projects of the Brihanmumbai Municipal Corporation (BMC). A report published in the Hindustan Times mentioned that the accusations were raised by Aaditya Thackeray, leader of Shiv Sena (UBT), who had led a morcha to the BMC the previous day.

Strong Financial Position and FD Figures Presented

During the press conference, Chahal provided detailed information regarding the Fixed Deposits (FDs) and the financial state of the BMC. Chahal revealed that the FDs amounted to ₹79,115 crore when he assumed office on May 8, 2020. The figure increased to ₹91,690 crore by March 31, 2022, and as of June 30, 2023, it stood at ₹86,467 crore. These figures demonstrated a strong financial position under the current administrative regime.

Expenditure Breakdown: Policy Obligations and Pending Dues

Chahal addressed the allegations of financial irregularities by highlighting specific expenditures. According to him, the BMC was obligated by policy to pay ₹2,050 crore as a share of fungible Floor Space Index (FSI) money to the Maharashtra State Road Development Corporation (MSRDC), which had remained unpaid for the past five years. Additionally, an earmarked amount of ₹2,567 crore was specified for pending gratuity and pension dues of BEST employees.

Capital Works and Road Development Expenses

Providing further insights into BMC's expenditure, Chahal explained that a substantial sum of ₹14,000 crore had been invested in capital works, including road development and the Mumbai coastal road project, by March 31, 2023. This information debunked the allegations suggesting a depletion of BMC's FDs and emphasized the solid financial footing under the current administration.

Potholes Issue Addressed with Focus on Geographical Conditions

Regarding the perennial issue of potholes on Mumbai roads, Chahal defended the situation by pointing out the unfairness of comparing Mumbai with cities experiencing less rainfall. He attributed the formation of potholes to factors such as water stagnation, geographical conditions, and continuous rainfall on asphalt roads. He mentioned that Chief Minister Eknath Shinde had directed the BMC to find a permanent solution, resulting in the invitation of tenders for concreting approximately 400 km of roads.

Tender Process Explained, Revision of Values

Chahal discussed the tender process and the adjustments made due to changing market rates. The initial tender worth ₹5,807 crore had to adhere to the Unified Schedule of Rates from 2018, leading to its cancellation. However, a revised tender worth ₹6,080 crore was issued due to the significant increase in construction costs between 2018 and 2023. The revised tender value incorporated a 17% price hike and 6% GST to align with prevailing market rates.

Clarity on Sanitary Napkins Rates and Street Furniture Scam

Chahal addressed allegations of increased rates for sanitary napkins in public toilets. He clarified that a survey conducted by the Solid Waste Management department resulted in the decision to install sanitary napkin vending machines in 5,000 out of the 8,173 toilets under BMC's jurisdiction. The higher price of the proposed Combo Sanitary Napkin Vending and Incinerator Machine was justified by the scope of work, technical details, and the inclusion of manpower and operational

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