BBMP’s hundi system faces criticism
The hundi system monitored by the Bruhat Bengaluru Mahanagara Palike (BBMP) has come under severe criticism of the Comptroller and Auditor General of India.
The CAG has reported that the Palike commissioner and the Chief Accounts Officer are responsible for its poor financial condition.
CAG has observed that the BBMP’s improper financial management has resulted in useless payment of interest of Rs 21.33 crore to the banks.
The CAG has blamed the BBMP Commissioner for starting hundi system without even seeking the permission of the State government.
Contractors can discount their bills directly from the banks under the hundi system and the system was introduced to benefit them.
The CAG noted that in 2008-09 and 2009-10, the expenditure on works exceeded the budget provision by 37 and 46 per cent, respectively, but, there was no corresponding increase in own revenue. This was due to sanction of a large number of works by the commissioner when the Council was not in existence.
However, the civic body, on its part, has come out with an explanation that it will take corrective measures to plug leakage of its financial resources.
BBMP, Bruhat Bengaluru Mahanagara Palike, chief accounting officer, Comptroller and Auditor General of India, finance, financila measures, hundi system, Palike commissioner, The hundi system
