Development works in Mohali are taking a hit with the Greater Mohali Area Development Authority (GMADA) not providing its share of funds to the municipal corporation (MC).
As per a 2020 agreement, GMADA has to foot 25% cost of any development work carried out by MC. But it has failed to pay up for the past eight months, leading to dues worth ₹20 crore.
Now, MC has shot off a letter to GMADA, asking them to at least pay ₹3 crore, due against the ₹11-crore development works carried out from December 1, 2021, to January 31, 2022.
Confirming this, MC commissioner Navjot Kaur said they had written a letter to GMADA requesting them to clear dues for works done in one month at the earliest.
Meanwhile, GMADA chief administrator Amandeep Bansal said, “We are examining the matter. I am not aware of the agreement with MC.”
The development works pertain to maintenance of sewer lines, stormwater drains, water supply, solid waste management, street lights, toilet blocks, roads, footpaths and parks.
Deputy mayor Kuljeet Singh Bedi said even though GMADA was earning crores in form of penalties, building plan approvals and property auction, it was sitting tight on releasing funds owed to MC. He also lashed out at the AAP-led Punjab government for not holding GMADA responsible.
Meanwhile, GMADA also owes MC ₹2 crore against GST collections for the past two months. Besides, the Punjab State Power Corporation Limited (PSPCL) has also not paid its dues worth ₹30 crore against excise duty to MC.
Notably, in May this year, the Punjab local bodies department had imposed a cut of ₹25 crore in Mohali MC’s budget for the year 2022-23. MC had proposed a budget of ₹161 crore but the local bodies department approved only ₹136 crore. Even for 2021-22, the department had slashed MC’s budget by ₹31 crore. Against the proposed ₹148 crore, it had approved only ₹117 crore. As such, MC relies heavily on contributions from GMADA and PSPCL for the city’s development works.