Panchkula MC in dock, audit bares multi-crore scam

Bhartesh Singh Thakur

Tribune News Service

Chandigarh, November 27

The Directorate of Local Audit, Haryana, has exposed scam worth crores of rupees allegedly committed by the Municipal Corporation Panchkula (MCP). From giving undue benefits to a shopping mall to awarding contracts without e-tendering and choosing the second lowest bidder for a project, the MCP’s files are full of irregularities.

CM Manohar Lal Khattar recently ordered a vigilance inquiry into the matter.

The audit report, submitted to the Haryana Legislative Assembly, revealed that property and fire tax in respect of Shalimar Mall, Sector 5, for 2010-11 to 2021-22 was under-evaluated by Rs 1.76 crore.

It is pointed out that the MC Commissioner had ruled that basements wouldn’t be counted for the assessment of mall’s property tax whereas the exemption is only for residential properties and shops. Similar exemption was given to hotels resulting in a loss of Rs 21.77 lakh for 2019-20.

A contract for purchase of 29 e-carts for door-to-door garbage collection was given to the second lowest bidder (SKS Trade India Pvt Ltd) in December 2017, resulting in a loss of Rs 12.06 lakh. The tender mentioned that the firm would be responsible for maintenance for two years, but the period was reduced to one year.

In May 2019, a contract for maintenance was given to another firm and Rs 5.85 lakh was spent on the upkeep of vehicles despite their being in warranty period. Also, 26 e-carts got damaged before the expiry of warranty period, resulting in a loss of Rs 43.97 lakh.

In its reply to the Local Audit Department, the MC informed that the decisions were taken by competent officers.

On night shelters for homeless people, the audit found that the contract was given to Balaji Event Management, Chandigarh, for Rs 51.12 lakh without floating an e-tender. The decision was taken after taking quotations.

It was found the contractor had set up shelters at some places and entries of visitors were shown even before the contract was given. “It shows that taking quotations and selecting the firm was a mere formality,” said the report.

Besides, the MC spent Rs 17.11 lakh without e-tenders for other works. It overpaid Rs 16.54 lakh to VN Engineering for running road sweeping machines despite the fact that the machines were not fully operated and a fine of Rs 6.87 lakh was not levied.

Ind Sanitation Solution Pvt Ltd was allotted the work of bio-remediation of legacy waste in Sector 23. The agency started the work on September 19, 2020. It was to be completed by April 7, 2021. By June 22, 2021, at least 70 per cent of work was yet to be completed. Also, Rs 9.50 lakh fine was not charged whereas a payment of Rs 5.04 crore was made to the firm.

The audit found that Rs 1.32 crore was paid in advance to MC employees in 2019-20, but not settled yet. Also, consumer tax for collection of garbage was to be added in property tax bills, which led to a loss of Rs 16.15 crore, and business licences were not renewed in 2019-20, leading to a loss of another Rs 48.10 lakh.

The MCP Commissioner, Dharamveer Singh, said they were yet to get the report.