Standing Committee member Abhijit Jha questions spending approvals and pending contractor payments exceeding ₹3 crore
Nagpur: The Nagpur Municipal Corporation (NMC) has come under scrutiny over expenditure incurred under the National Vayoshri Scheme, after Standing Committee member Abhijit Jha questioned how spending of over ₹4.16 crore was approved when the civic body had received only ₹1 crore in funding.
The issue was raised during the NMC Standing Committee meeting held on Monday, where Jha sought an explanation from the administration regarding expenditure approvals, funding shortages and outstanding payments to contractors.
He questioned why the civic administration had authorised expenditure exceeding the available funds despite knowing that sufficient financial resources were not available to clear contractors’ bills.
₹4.16 Crore Expenditure Approved Against ₹1 Crore Received
The controversy relates to the implementation of the Central Government’s National Vayoshri Scheme, 2021, along with camps organised for distributing assistive devices to senior citizens and persons with disabilities.
Under the programme, constituency-wise distribution camps were organised across Nagpur.
The NMC was expected to receive ₹2 crore through the Artificial Limbs Manufacturing Corporation of India (ALIMCO). However, the civic body reportedly received only ₹1 crore.
Despite the funding shortfall, the then Municipal Commissioner and Administrator had approved expenditure amounting to ₹4,16,58,000 for the programme.
Over ₹3 Crore in Contractor Bills Still Pending
According to the financial details presented during the discussion, the NMC has already paid ₹98,58,384 to contractors from the funds received.
However, bills amounting to ₹3,02,27,081 are still pending.
The outstanding payments have raised questions about the financial planning and approval process followed during the implementation of the scheme.
Jha demanded to know why expenditure commitments were permitted beyond the available budget and how the administration intended to settle the remaining liabilities.
₹2 Crore Provision in 2026-27 Budget
To address the pending payments, the NMC has made a provision of ₹2 crore in its 2026-27 budget under the head ‘Antyodaya Scheme — Assistance for Persons with Disabilities’.
The allocation has been included as an outstanding liability through the Standing Committee.
However, the provision is lower than the reported outstanding contractor bills of over ₹3.02 crore, leaving questions about how the remaining amount will be cleared.
Questions Raised Over Financial Accountability
The issue has brought attention to the NMC’s expenditure approval process, particularly in schemes where funding is expected from external agencies.
Jha questioned the rationale behind approving financial commitments substantially higher than the funds actually received.
The discussion has also highlighted the need for clarity on whether the expenditure was backed by additional funding commitments and what arrangements were made to meet outstanding liabilities.
The administration’s detailed response to the questions raised during the meeting was not available in the information provided.
