Chandigarh MC failed to claim ₹32 crore compensation

A recent audit has revealed that the Chandigarh Municipal Corporation (MC) has not collected ₹32 crore from the administration for land acquired over the past two decades. This news comes during a time of financial difficulty for the civic body, which has delayed employee salaries and stalled development projects. The report from the Comptroller and Auditor General of India (CAG) points out that the Chandigarh administration transferred several villages to the MC between 1996 and 2018. As a result, the MC was supposed to develop these areas and collect funds through property taxes and compensation for acquired land. However, the audit found that the MC failed to claim the ₹32 crore owed for land from the Maloya gram panchayat. The records show that the MC did not establish the amount payable for this land. As a result, the administration deposited ₹7.05 crore into a bank account in 2004, which, with interest, could have grown significantly by now. Additionally, about ₹25 crore remains in court, as the MC never pursued the claims. The CAG report highlights that the MC is in dire financial straits, unable to pay salaries on time and struggling with other expenses, such as pensions and utility bills. Efforts to reach MC commissioner Amit Kumar for comment were unsuccessful. Development projects have been on hold since May 2024, as the MC grapples with its financial issues.