Published On : Tue, Jul 14th, 2015

Isn’t NMC in fictitious financial crunch?

NMC Bank

On one hand, the Nagpur Municipal Corporation (NMC) is under debts worth crores of rupees of NMC Karmachari Sahakari Bank while on the other, the NMC administration is spending a lot on renovation of official cabins of office-bearers of NMC old building. Does it not mean that the NMC’s top officials in their nexus with stalwart NMC office-bearers are perhaps creating artificial financial crisis in the NMC for the self-interest best known to them only?

According to most reliable sources, the NMC employees borrow loans from NMC Employees Cooperative Bank NMCECB). As on this date, the Bank has provided loans in crores of rupees to its member-employees. The finance department of NMC deducts in monthly installments the outstanding loan from the salaries of NMC employees. It is mandatory on the NMC that it should deduct in all Rs 3.25 crores from the salaries of employees and hand over the deducted amount to the Bank for reconciliation of loan amount. Unfortunately, the Bank’s Rs 12 crore is outstanding against NMC over past 6 months, because the finance department of the NMC has not deposited it with the Bank (NMCECB), and it is still unwilling to deposit the outstanding money.

The finance department had paid Rs 3.25 crore to the Bank about a month ago, and the payment of about Rs 12 crore is still outstanding against the finance department or NMC. It is feared that if the Bank does not receive Rs 3.25 crore regularly every month, and if the over-dues are also not received for a couple of months, the Bank may become bankrupt, and it may not serve the purpose for which it was set up in employees’ welfare.

Since the LBT was introduced, the NMC employees had been receiving their salaries after a gap of 50 days on priority basis. But there is no indication of payment due even for the month of June 2015. All employees are thus disturbed. While this is the current crisis, the official cabins and toilet-sections of NMC office-bearers in the old NMC building are being renovated in the name of beautification. Apart from this, under support of ruling party corporators the development works in the wards of certain favoured members including those from opposition bench are being carried out.

At the behest of these corporators the promotional prospects of certain NMC officials will be tabled before AGM of NMC on July 20. Once they are promoted, their salaries will hike and the NMC will be under financial burden due salary hike. The NMC has handed over the management of traffic park to contractor related to former corporator, all under favouritism.

It is also worth mentioning here that the ruling party is divided in groupism and each group tries to exploit the NMC in its personal interest. Such a picture of the NMC hints that the citizens are being befooled in the name of fictitious financial crisis in the main civic body of the city. It is hoped that there should not be a revolt of citizens and the NMC employees against the ruling party in the NMC, otherwise the NMC would be in worst ever crisis.