Nagpur: The Nagpur Municipal Corporation (NMC) has categorically denied allegations of a pension scam, asserting that the revision in the employer’s contribution under the National Pension System (NPS) was carried out strictly in accordance with State Government directives and after a detailed administrative process.
Responding to media reports published on Thursday alleging irregularities involving pension funds ranging from Rs 9 crore to Rs 55 crore, the civic body’s Finance Department clarified that the issue pertains to a legitimate policy decision regarding the enhancement of the employer’s NPS contribution and not to any financial misappropriation.
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In an official statement issued by Chief Accounts and Finance Officer Sadashiv Shelke, the corporation said the implementation of the revised contribution was based on successive government resolutions and administrative approvals spanning several years.
According to NMC, the Maharashtra Finance Department, through a Government Resolution dated August 19, 2019, directed all municipal corporations to increase the employer’s contribution under the National Pension System from 10 per cent to 14 per cent, with effect from April 1, 2019. The revised contribution was made applicable to officers, employees and teaching staff appointed on or after November 1, 2005.
The civic body explained that the proposal to implement the revised contribution was first placed before the General Body in August 2021. However, the then Municipal Commissioner did not accord immediate approval, observing that the matter involved a policy decision requiring further examination.
Following another Government Resolution issued by the Urban Development Department in September 2024, the Finance Department resubmitted the proposal. At that stage, the then Municipal Commissioner instructed officials to continue with the existing 10 per cent employer contribution until the State Government issued detailed structural guidelines for implementing the revised National Pension System.
NMC said the revised guidelines were received in December 2025, following which the proposal was reassessed in light of the corporation’s financial position. After evaluating its fiscal capacity, the then Commissioner-cum-Administrator approved the enhancement of the employer’s contribution from 10 per cent to 14 per cent, effective April 1, 2025, through Administrator Resolution No. 82/NMC/Administrator dated December 6, 2025.
The corporation maintained that all current pension-related transactions are being carried out strictly in accordance with this approved resolution.
Rejecting the allegations of financial irregularities, the Finance Department stated that the decision was taken solely on administrative and financial considerations and in compliance with State Government policy.
“NMC has not committed any financial embezzlement or pension scam. The revision of the employer’s contribution under the National Pension System has been implemented through a transparent administrative process and in accordance with government directives,” the statement said.
The civic body reiterated that the controversy stems from the implementation of a government-approved pension policy and not from any misuse or diversion of public funds.
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