FD deposits worth crores used for Mumbai development works only: BMC

Mumbai: The BMC has made it clear that huge fixed deposit amounts to the tune of Rs 61,510 crore that are kept in various banks are used for city development projects only.

Corporators across parties had demanded that this money should not remain unused and should be used for Mumbaikars instead of burdening them with any kind of tax hike.

Additional municipal commissioner Sanjay Mukherjee told the BMC house, “These fixed deposit funds are used for development works only. Out of the total funds, Rs 18,916 crore has been kept for various purposes such as provident fund, pension, gratuity, fixed deposits and other special funds.

The remaining Rs 42,557 crore can be used for several development projects. We also have liabilities of Rs 9,978 and Rs 2,232 crore for roads and

water supply works, which we want to settle at the earliest.”

Civic officials said that the BMC makes large-scale provision for capital works in its budget. It takes a year or more to complete these works owing to their very nature.

Delays take place in procuring permissions or no-objection certificates (NOCs) from various agencies including forests, environment, railway, traffic police etc. for project works.

Additionally, problems are faced while carrying out the actual works. Due to all these factors, funds end up not being used completely. Further, the balance amount is not used in the immediate future but is invested in fixed deposits of various banks.

This amount includes other special funds, security deposits taken from contractors/suppliers, and funds used for paying daily liabilities. It also includes employees’ wages, provident funds and pension amounts. As they are not part of the budget, they are not included in the BMC’s annual budget.

Mr Mukherjee said, “The BMC has received funds of Rs 8,267 crore from fungible FSI and we want to use them for projects like the Mumbai coastal road and Goregaon-Mulund Link Road.