Dissolve BBMP or appoint a new admin, observes Karnataka High Court

BENGALURU: Expressing concern over the manner in which Bruhat Bengaluru Mahanagara Palike (BBMP) was managing its accounts, the Karnataka High Court on Tuesday orally observed, “Dissolve BBMP or appoint an administrator if you (BBMP) cannot manage your accounts”.

The high court made the observation while hearing the petition filed in public interest by Namma Bengaluru Foundation (NBF) and Member of Parliament Rajeev Chandrasekar seeking Comptroller and Auditor General (CAG) audit of the finances of BBMP.

The division bench headed by acting chief justice S.K. Mukherjee, who made the above observation, was astonished while hearing the case wherein it was alleged that hundreds of crores of tax receipts and revenue collected by BBMP have not been credited into the main bank accounts but deposited in miscellaneous accounts by some officials in BBMP.

It is further alleged that over 900 bank accounts are being operated by the BBMP officials, adding that such a large number of bank accounts for one institution located within the same city calls for inquiry as to how accounts are opened and operated in various public sector and private sector banks.

The PIL further wanted CAG to audit BBMP finances from 2011 and to submit its findings to the court, state government to conduct comprehensive investigations against BBMP, its commissioner and other officers of the Palike, to identify the reasons for the failure to conduct timely audit of the BBMP.

In his letter to Chief Minister Siddaramaiah in October, 2015, Rajeev Chandrasekar had requested him to order a CAG audit into BBMP accounts.

He had highlighted the rampant and deliberate mismanagement of the BBMP finances, resulting in thousands of crore of rupees of its revenue, including tax collected from citizens, being siphoned off and not being used for the city’s development.

The petition also stated that BBMP finances have not been audited for years and last internal audit was done in 2011. Senior advocate Sajan Poovayya argued the matter on behalf of NBF and Rajeev Chandrasekar.

It states that the last Comptroller and Auditor General of India (CAG) audit of BBMP was conducted for the year 2009-10 and had exposed large scale financial irregularities. In its report tabled in the Legislature, CAG had cast serious aspersions on the BBMP accounting and financial practices.

The shortfall in certification of accounts by Chartered Accountants during the years 2008-13 has been observed by the CAG, its added. After hearing the matter, the high court has asked the state government to respond on the matter and further adjourned the case.