December 6th 2025.
A recent report submitted by the Local Fund Audit Report in 2021-22 has shed light on various irregularities in urban bodies across the state of Bhopal. These findings have raised concerns about the functioning of these units and their handling of funds. One of the major issues highlighted in the report is the occurrence of multiple and excess payments.
The report has brought to attention the cases of extra payments made by municipal corporations in Rewa, Ujjain, and Ratlam. Similarly, Nagar Palikas in Damua and Kotma have also been flagged for making additional payments. The situation is no different in Neemuch and other Nagar Palikas, where contractors and other work have been paid more than what was due. Shockingly, the report has also revealed that a whopping amount of Rs 29 crore has been paid without any valid reason.
The irregularities do not stop there. The report has also uncovered financial discrepancies in various government schemes, purchases, and other tasks. For instance, the Dewas Municipal Corporation, Dabra Nagar Palika, and Chanderi and Kothri Nagar Parishads have been found to make double payments. In one instance, a sum of Rs 59 lakh was paid twice for a single work. Moreover, more than Rs 7 crore has been paid for salary and travelling allowances, which is a cause for concern. It has also been discovered that seven municipal corporations have transferred less money to the banks than what was stated in their balance sheets.
In another shocking incident, a 27-year-old accountant in Kolar took her own life, leaving behind a suicide note that revealed details of financial irregularities in the city. The auditor has deemed these actions as a serious financial violation. The report has also uncovered similar irregularities in Chhindwara, Rewa, Satna, Ratlam, Morena, Indore, and Khandwa municipal corporations. Furthermore, 15 Nagar Palikas and 13 Nagar Parishads have been found to have discrepancies in their accounts.
The report has also brought to light the fact that several urban bodies have suffered a loss of Rs 7.70 crore due to bounced cheques. These cheques were issued to them, but the money was not recovered. Additionally, a sum of over Rs 2.50 crore is still unrecovered from mobile tower companies, resulting in a significant loss for the civic bodies.
In conclusion, the Local Fund Audit Report has uncovered various irregularities in the functioning of most Nagar Nigams, Nagar Palikas, and Nagar Parishads. The findings have revealed a major scam in the making of payments, raising concerns about the management of funds in urban bodies across the state. Urgent action needs to be taken to rectify these financial discrepancies and prevent such incidents from happening in the future.
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