The Nagpur Municipal Corporation (NMC) is biting off more than it can chew. This is evident from the inflated budgets presented by successive NMC standing committee chairmen over the years, said chartered accountant Kailash Jogani. “Provision for expenditure is made accordingly. There is bound to be financial trouble when the receipts fall way short of the target and expenditures keep on increasing,” he said.
According to Gopal Bhutada, a homeopathy practitioner, the problem lies with the NMC administration and not with the people’s representatives.
Taking a tough stance over the financial mess in the NMC, the new municipal commissioner Tukaram Mundhe stopped all development works before the NMC house prevailed over his decision. Questioning the civic chief’s approach, Bhutada said why didn’t Mundhe take similar steps when he was the CEO of Nagpur Zilla Parishad to resolve financial issues there. “The commissioner should first set his house in order,” said Bhutada.
Presenting a counter view, Dinesh Naidu, secretary, Parivartan: The Citizens’ Forum, declared that the NMC is the most mismanaged civic body in the country. “The revenue is poor and the NMC is solely dependent on funds from the state government. This is mainly because the corporators are incapable,” he said.
Trying to explain the revenue deficit, Prashant Ugemuge, an entrepreneur, said that abolition of octroi was a major dent. “Octroi brought regular cash flow to NMC. Now, the property tax collection is low and the civic body can’t rely on GST compensation. Efforts are not being taken to resolve property tax disputes. Instead, suggestions like dissolving NMC are being made, which seems more like a political agenda,” he said.
The problem is an accumulation of inaction over the years, felt Piyali Kanabar, a schoolteacher. “There have always been discrepancies in NMC functioning. Despite complaints, those have been left unrectified,” she said.
Instead of getting the property assessment process done in the right manner, the civic body is trying to squeeze more out of the existing taxpayers, observed Tejinder Singh Renu, secretary of Vidarbha Taxpayers Association. According to him, many don’t even receive the property tax demand. “The NMC should target new properties,” he said and added that the state government should increase GST share to local bodies for their smooth functioning.
Businessman Anand Chandwani blamed inaction by the NMC administration against tax defaulters on political interference. “Lower rung officers don’t do what is necessary fearing backlash from the netas,” he said, and added that this attitude will ruin the civic body.
Chandwani also claimed that honest taxpayers are being exploited but denied even the basic facilities they deserve.
Taking the point forward, Jogani said the system in Nagpur is discriminatory. Demanding a scientific assessment, he said that owners of old properties are being made to pay higher taxes, while the newer ones are paying less.
For Maria Shakir, an entrepreneur, one of the major issues is the lack of communication and information. She also puts the onus on citizens to check whether the civic body is functioning properly. Kanabar sees mismanagement in many aspects of its functioning. Giving an example, she said that the civic body is not transferring the excess teachers in NMC schools and paying salaries for literally no work.
Given the mismanagement in civic services, can roping in private agencies to handle them improve things? Kanabar said there is a flip side to privatization. Bhutada too finds a problem. “The agencies are appointed through political patronage,” he said. Giving his take, Ugemuge said private agencies have no option but to establish political links to bag contracts.
Offering a solution to increase NMC income, Jogani said that every property in NMC limits must be assessed properly. He even suggested generating income from unutilized properties of the civic body. “Rents should be charged for hoardings scientifically,” he said.
“New properties needs to be brought under tax net. Lease ground rent of NMC properties should be increased gradually, taking into confidence the lessees thereon to avoid litigation,” said Renu.
On the calling attention motion by four Shiv Sena MLAS from Mumbai to dissolve the NMC citing that the civic body has collapsed financially, Renu felt that there has been no misuse of funds but over ambitious projects like London Street and malls should be put on hold. “All unproductive expenses like welcome gate, political statues and likewise need to be scrapped,” he said. Kanabar gave example of Futala Road work as one of the unwanted projects.
Jogani too said that funds were misused in gardens and constructing cement roads in every lane when it was not needed. Adding to this, Shakir said new roads are dug up in no time, and then again money is spent on its repairs. “This is due to lack of coordination between various department,” she said.
Questioning the need for cement roads, Naidu said that tar roads too can be good but there is lot of corruption in the work, leading to poor quality. Bhutada was of the opinion that cement roads are not needed in city because they are suited only to coastal areas.
Giving his views on Mundhe’s style of functioning, Renu said that as municipal commissioner, he needs to be strict and work as per the law. “At the same time, he needs to take everybody along,” said Renu. “Mundhe is making a difference. There are so many people who attend the darbar he holds daily. Even the officers are wary of his strict functioning style,” said Naidu.
Mundhe is an example of how every municipal commissioner should work, added Ugemuge. Chandwani felt that every corporator should be easily approachable for the citizens.
Bhutada said there should be no fight between the executive and the legislature, else the common man suffers. On this, Naidu said that a pressure group is needed to take issues of citizens with the NMC. “NGOs should be called for their suggestions before a project is planned,” he said. On this, Renu said since there is no legal provision for this, people should contact their corporators and give suggestions.
Panellists also felt that the ruling party is having it easy due to lack of a strong opposition. “Opposition is only for the namesake. Can’t expect much from them. In fact, opposition and ruling party are of the same species,” he said. Kanabar added that vested interest are killing our society.
Renu was of the opinion that the opposition members are less in numbers and also a divided lot. “Still, they have the option of approaching the court if they can prove any wrongdoings,” he said.
According to Gopal Bhutada, a homeopathy practitioner, the problem lies with the NMC administration and not with the people’s representatives.
Taking a tough stance over the financial mess in the NMC, the new municipal commissioner Tukaram Mundhe stopped all development works before the NMC house prevailed over his decision. Questioning the civic chief’s approach, Bhutada said why didn’t Mundhe take similar steps when he was the CEO of Nagpur Zilla Parishad to resolve financial issues there. “The commissioner should first set his house in order,” said Bhutada.
Presenting a counter view, Dinesh Naidu, secretary, Parivartan: The Citizens’ Forum, declared that the NMC is the most mismanaged civic body in the country. “The revenue is poor and the NMC is solely dependent on funds from the state government. This is mainly because the corporators are incapable,” he said.
Trying to explain the revenue deficit, Prashant Ugemuge, an entrepreneur, said that abolition of octroi was a major dent. “Octroi brought regular cash flow to NMC. Now, the property tax collection is low and the civic body can’t rely on GST compensation. Efforts are not being taken to resolve property tax disputes. Instead, suggestions like dissolving NMC are being made, which seems more like a political agenda,” he said.
The problem is an accumulation of inaction over the years, felt Piyali Kanabar, a schoolteacher. “There have always been discrepancies in NMC functioning. Despite complaints, those have been left unrectified,” she said.
Instead of getting the property assessment process done in the right manner, the civic body is trying to squeeze more out of the existing taxpayers, observed Tejinder Singh Renu, secretary of Vidarbha Taxpayers Association. According to him, many don’t even receive the property tax demand. “The NMC should target new properties,” he said and added that the state government should increase GST share to local bodies for their smooth functioning.
Businessman Anand Chandwani blamed inaction by the NMC administration against tax defaulters on political interference. “Lower rung officers don’t do what is necessary fearing backlash from the netas,” he said, and added that this attitude will ruin the civic body.
Chandwani also claimed that honest taxpayers are being exploited but denied even the basic facilities they deserve.
Taking the point forward, Jogani said the system in Nagpur is discriminatory. Demanding a scientific assessment, he said that owners of old properties are being made to pay higher taxes, while the newer ones are paying less.
For Maria Shakir, an entrepreneur, one of the major issues is the lack of communication and information. She also puts the onus on citizens to check whether the civic body is functioning properly. Kanabar sees mismanagement in many aspects of its functioning. Giving an example, she said that the civic body is not transferring the excess teachers in NMC schools and paying salaries for literally no work.
Given the mismanagement in civic services, can roping in private agencies to handle them improve things? Kanabar said there is a flip side to privatization. Bhutada too finds a problem. “The agencies are appointed through political patronage,” he said. Giving his take, Ugemuge said private agencies have no option but to establish political links to bag contracts.
Offering a solution to increase NMC income, Jogani said that every property in NMC limits must be assessed properly. He even suggested generating income from unutilized properties of the civic body. “Rents should be charged for hoardings scientifically,” he said.
“New properties needs to be brought under tax net. Lease ground rent of NMC properties should be increased gradually, taking into confidence the lessees thereon to avoid litigation,” said Renu.
On the calling attention motion by four Shiv Sena MLAS from Mumbai to dissolve the NMC citing that the civic body has collapsed financially, Renu felt that there has been no misuse of funds but over ambitious projects like London Street and malls should be put on hold. “All unproductive expenses like welcome gate, political statues and likewise need to be scrapped,” he said. Kanabar gave example of Futala Road work as one of the unwanted projects.
Jogani too said that funds were misused in gardens and constructing cement roads in every lane when it was not needed. Adding to this, Shakir said new roads are dug up in no time, and then again money is spent on its repairs. “This is due to lack of coordination between various department,” she said.
Questioning the need for cement roads, Naidu said that tar roads too can be good but there is lot of corruption in the work, leading to poor quality. Bhutada was of the opinion that cement roads are not needed in city because they are suited only to coastal areas.
Giving his views on Mundhe’s style of functioning, Renu said that as municipal commissioner, he needs to be strict and work as per the law. “At the same time, he needs to take everybody along,” said Renu. “Mundhe is making a difference. There are so many people who attend the darbar he holds daily. Even the officers are wary of his strict functioning style,” said Naidu.
Mundhe is an example of how every municipal commissioner should work, added Ugemuge. Chandwani felt that every corporator should be easily approachable for the citizens.
Bhutada said there should be no fight between the executive and the legislature, else the common man suffers. On this, Naidu said that a pressure group is needed to take issues of citizens with the NMC. “NGOs should be called for their suggestions before a project is planned,” he said. On this, Renu said since there is no legal provision for this, people should contact their corporators and give suggestions.
Panellists also felt that the ruling party is having it easy due to lack of a strong opposition. “Opposition is only for the namesake. Can’t expect much from them. In fact, opposition and ruling party are of the same species,” he said. Kanabar added that vested interest are killing our society.
Renu was of the opinion that the opposition members are less in numbers and also a divided lot. “Still, they have the option of approaching the court if they can prove any wrongdoings,” he said.
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