House Panel Raises Alarm Over Rs 1,395 Crore Unaccounted Advances to Municipal Bodies

The Committee on Local Bodies and Panchayati Raj Institutions of the Haryana Vidhan Sabha has expressed serious concern over outstanding temporary advances of Rs 1,395.98 crore given to urban local bodies during 2019-20, warning that the situation "may lead to embezzlement." 

In its 20th report for 2024-25 tabled in the House on March 18, the committee emphasized the gravity of the issue, stating: "A huge number of temporary advances to the tune of Rs 1,39,598.66 lakh (Rs 1,395.98 crore) for 2019-20 is outstanding for adjustment. This may lead to embezzlement, being serious in nature may be looked into."

Major Defaulters

Of the total outstanding amount, the Faridabad Municipal Corporation alone accounts for Rs 781.75 crore, while the Gurugram Municipal Corporation has unadjusted advances of Rs 403.86 crore.

The issues affect all 10 municipal corporations, 18 municipal councils, and 34 municipal committees across Haryana. 

What Are Temporary Advances?

Temporary advances are funds given to employees for making urgent payments related to local bodies' work, which should be accounted for after the work is completed. 

Repeated Warnings Ignored 

The Local Audit Department, Haryana, in its report for 2019-20, highlighted that despite "repeated and clear-cut instructions issued by the Department of Urban Local Bodies, Haryana, as well as by the Local Audit Department for prompt adjustment of unadjusted advances, pending for many years, no concrete steps have been taken by the Municipal Administration to get it adjusted." 

For the previous year (2018-19), the outstanding temporary advances stood at Rs 1,316.40 crore in urban local bodies, indicating the problem has worsened. 

Call for Accountability

The committee, headed by Deputy Speaker Krishan Lal Middha, has called for strict action, recommending that "district municipal commissioners/chief executive officers concerned take necessary or prompt action for the adjustment of these temporary advances failing which accountability of the chief executive officers may also be fixed."

Missing Records

The panel has also flagged serious concerns about records related to property tax, building plan applications, and no-dues certificates not being submitted for audit for many years. 

"In the absence of a record, any serious financial irregularity may take place," the committee warned, calling for strict directions to municipal officials and accountability for chief executive officers.

Outstanding Audit Objections

The report further highlighted that numerous audit objections remain unresolved despite being detailed in Annual Audit Reports, with little effort being made by the concerned officers to settle them. 

The committee has recommended "a special drive in all the municipalities to settle these audit paras/audit requisition/audit objections within a specified time period."