NMC’s Rs 95 crore stuck with crisis-hit Yes Bank

Nagpur: The Nagpur Municipal Corporation (NMC), already reeling under acute funds crunch, could face more cash paucity as around Rs 95 crore, sanctioned for the civic body through Chief Minister’s Fund, have been stuck in Civil Lines-based Yes Bank, informed Vijay Zalke, Chairman, Standing Committee on Monday.

“While dealing with the prolonged financial crisis at NMC, the news came as a shock to us. I have sought the detail information from the concerned department regarding the same. Following which steps will be taken accordingly. Prima facie, the inputs suggest that money of the CM’s fund worth Rs 95 crore sanctioned for the development works has been stuck in the Yes Bank. This will surely adversely impact the works across the city,” Zalke said while interacting with media persons.

ALSO READ: Nagpur university has Rs 191 crore with Yes Bank: official

It is to be mentioned that, Rashtrasant Tukadoji Maharaj Nagpur University (RTMNU) has an account with Yes Bank. Following the Reserve Bank of India (RBI) imposed a moratorium on Yes Bank, about Rs 191 crore of Nagpur University has also been stuck with the crisis-hit private lender.

The RBI on March 5 had imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3. It also superseded the board of the bank.