CAG’s blow on BMC’s ₹12,000-crore works: mismanagement thriving under one family’s shelter exposed!

The Mumbai Municipal Corporation (BMC) is known as the richest local self-governing body in the country. Built on the taxes paid by Mumbaikars, this institution is the backbone of the city’s healthcare, infrastructure, and development. However, a special audit report by the Comptroller and Auditor General (CAG) has raised serious questions about the functioning of the BMC. The report has revealed large-scale irregularities, negligence, and lack of transparency in works worth nearly ₹12,000 crore. And is all this happening with someone’s blessings? For years, the BMC has remained under the control of a single family. Under the shelter of this family, a series of scams continued. It would not be inappropriate to say that those who looted the BMC treasury were nurtured by the family in power. The question of where the money is leaking from has been revealed through the CAG report. The CAG has indicted a lack of transparency in the expenditure of ₹12,000 crore by the BMC. This special audit, released on 31 October 2022, examined works carried out between 28 November 2019 and 31 October 2022. Notably, despite excluding several expenditures incurred during the COVID period, the report is extremely serious. In the words of the CAG, this report is only a “trailer,” and if a full investigation is conducted, even more shocking facts may emerge. The CAG investigation found that two departments of the BMC awarded as many as 20 works without following any tender process. These works, worth approximately ₹214 crore, were directly allotted. Additionally, works worth nearly ₹4,755 crore were awarded to 64 contractors without executing any formal contracts. Due to the absence of contracts, the BMC no longer has the authority to take action against these contractors, verify implementation, or fix accountability—this has been clearly stated by the CAG. This does not stop here. In 13 works across three departments, with a combined value exceeding ₹3,355 crore, no third-party auditor was appointed. As a result, there was no independent oversight over quality, actual execution, or expenditure. In this context, the CAG used strong terms such as “lack of transparency, systemic problems, poor planning, and careless use of funds.” The land acquisition case in Dahisar raises serious questions about the BMC’s financial decision-making ability. As per the 1993 Development Plan, over 32,000 square meters of land reserved for a garden, playground, and maternity home was decided to be acquired in 2011. However, the final purchase cost rose to ₹349 crore, which is 716 percent higher than the original estimate. Due to encroachments on the land, an additional expenditure of around ₹78 crore is expected for rehabilitation. The CAG’s conclusion is clear—this transaction provided no direct benefit to the BMC. Serious irregularities were also found in the SAP project of the Information Technology department. A contract worth approximately ₹160 crore was awarded to the existing contractor without inviting tenders. SAP India Ltd. was paid around ₹37 crore annually for maintenance, yet no concrete services were found to have been delivered in return. Shockingly, the same company was also entrusted with handling the tender process. Despite serious indications of manipulation in a 2019 forensic audit, no action has been taken till date. In the Bridges, Roads, and Traffic departments, blatant violations of rules were observed. Additional works were awarded without approval, contractors gained benefits worth crores, and payments were released despite lack of expected progress. Several road works were initiated without conducting any surveys. In some cases, billing was done without using materials, as noted by the CAG. In the Twin Tunnel project within Sanjay Gandhi National Park, work was started without obtaining final clearance from the Forest Department. As a result, the project cost escalated from ₹4,500 crore to ₹6,322 crore within a few years. In the Health Department, penalties had to be paid as a building at KEM Hospital was constructed without permission. In the Mithi River Pollution Control Project, it was revealed that work was actually awarded to a single contractor under the names of four different contractors. Regarding the Malad pumping station project, the CAG directly recorded observations indicating suspected intent in awarding the work to an ineligible bidder. Opposition parties allege that these instances are not merely examples of administrative negligence, but reflections of a culture that developed under the long-standing political patronage over the BMC. Officials changed, commissioners changed, but the reins of power continued to revolve around a single family. Under that shadow, these irregularities grew—this question has once again come to the forefront due to the CAG report. Is every rupee of taxpayers’ money being spent on development, or for electoral conveniences—this question is being asked again today. Through this, the corrupt administration of the one family running its household from BMC power has been exposed. And Mumbaikars, who is the Rahman dacoit of the BMC—identify it yourselves. And remember going forward—BMC is not the fiefdom of any one family. BMC is not a family business #notafamilybusiness