The Bhopal Municipal Corporation (BMC) is facing serious allegations of financial irregularities after Leader of Opposition (LoP) Shabista Zaki claimed discrepancies worth ₹43 lakh in the construction of the corporation’s new headquarters.
According to BMC’s civil department, the initial estimated cost of the new building was over ₹22.50 crore. As per regulations, the Mayor-in-Council (MiC) could authorize a maximum 20% cost escalation, but the project cost was directly increased by 50%, raising the total budget to over ₹33 crore.
In addition, more than ₹6 crore was further added to the corporation’s 2025-26 budget, even though the construction remains incomplete. A new completion deadline has now been set for June 30.
Key Allegations by Zaki:
- The contractor’s security deposit (SD) of ₹43 lakh was refunded prematurely, even though the construction is unfinished.
- No penalty was imposed on the contractor for the delays.
- GST rates were allegedly changed during billing without proper documentation—initial payments included 12% GST, which was later increased to 18% without explanation.
- Payments exceeding ₹1 crore were made to the contractor, raising suspicions of favoritism.
Corporation’s Defense:
Responding to the allegations, Mayor-in-Council member Ashok Vani defended BMC’s actions, stating that the SD was returned against a bank guarantee (BG), calling it standard procedure. He further asserted that the GST revision aligned with Central government rules and that due process was followed.
However, Zaki countered this claim, insisting that no such bank guarantee was submitted and that there is no official documentation supporting the GST rate change.
