MCC to Bear the Cost as MUDA Refuses to Pay Partial Cost of Constructed Service Bus Stand

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Mangaluru City Corporation (MCC) to Bear the Cost from General Funds as Mangaluru Urban Development Authority (MUDA) Refuses to Pay Partial Cost of Constructed Service Bus Stand near State Bank
Mangaluru: The Mangaluru City Corporation (MCC) finds itself in a difficult situation, after developing the service bus stand near State Bank, as the Mangaluru Urban Development Authority (Muda) has refused to pay its share of the cost. The city corporation developed the service bus stand by spending Rs 4.2 crore, and, expecting Rs 1 crore from the Muda. However, Muda has informed the MCC that there is no provision for the authority to sanction funds to the city corporation. The MCC is now mulling the release of Rs 1 crore from the general fund of the city corporation.

A decision to develop the service bus stand was taken at a meeting chaired by the DC of Dakshina Kannada on January 10, 2022. It was decided to take up the work as per the proceedings of the Mangaluru Smart City Advisory Forum. Accordingly, Mangaluru Smart City Limited (MSCL) agreed to pay Rs 2.2 crore while Rs 1 crore each will have to be sanctioned by the Muda and MCC.

Chief whip of the MCC council Premanand Shetty of the BJP said at a council meeting held on Friday that the work has already been completed by the contractor.
“The contractor has submitted the bill to the city corporation seeking payment. However, the commissioner of Muda in a letter recently has informed the MCC that they have no option to release funds. Hence, the MCC has to arrange additional Rs 1 crore towards the payment for the work,” Shetty said.

However, the opposition leaders of Congress raised objections over taking up the work without consulting the Muda. Corporator AC Vinayaraj said it was a serious lapse on the part of the MCC that significant development work has been taken up expecting funds from Muda. “How could the MCC invite tenders without getting confirmation from the Muda? Using the general fund will affect the sanctions to corporators for local development works,” he said.

MCC commissioner Anand CL said the MCC will have to make payment to the contractor since the tender was invited by the city corporation. After arguments, the council adopted a resolution to sanction an additional Rs 1 crore from its general funds.

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