CSMC contractor dues reach Rs 237 crore

Lokmat News Network

Chhatrapati Sambhajinagar:

The municipal corporation is currently busy finalising the budget for the 2026–27 financial year. In the coming days, estimates for development works to be included in the budget will be prepared. However, even before that, pending dues to contractors have mounted to Rs 237 crore in the accounts department. The administration and elected representatives have decided that payments will now be made strictly according to a seniority list, subject to availability of funds.

Between December and March, the corporation undertook large-scale development works. Preparations for elections and visits by public representatives led to crores of rupees being spent on various projects. Most of the bills for these works are yet to be prepared, but based on those already submitted to the accounts department, liabilities have reached Rs 237 crore, according to sources.

Besides, around 15 to 20 officers and employees retire every month in the corporation. Many employees who retired over the past two to three years are yet to receive their rightful dues. An amount of Rs 89 crore remains pending for retired staff, many of whom regularly visit the accounts department in pursuit of their payments.

When combined contractor dues, retirement benefits, land acquisition costs, and contributions to drainage projects, the total financial liability of the accounts department currently stands at around ₹450 crore.

Revenue from key sources such as property tax, water charges, and town planning has not met expectations. With expenditure high and income relatively low, the financial situation remains strained. If new development works under the upcoming budget begin, the pressure on the accounts department is likely to increase further. Officials noted that in April, many citizens pay property tax, but much of this revenue is immediately used for essential day-to-day expenses.

Revenue streams to be strengthened

The newly appointed municipal commissioner, Amol Yedge, has announced that concrete measures will be implemented to boost the municipal corporation’s immediate income. Many are now keenly observing what specific decisions the civic chief will take in the coming days.