Belagavi
Belagavi City Corporation, once the second highest in financial standing after Bangalore BBMP, is now financially bankrupt due to administrative errors. An emergency general meeting on August 27 decided to deposit 20 crores to avoid contempt of court, following a decision by the Dharwad High Court.
The decision to deposit was made after a 10-hour discussion amid strong opposition from Congress members, led by MLA Ashif Seth. Despite the opposition, ruling BJP members supported the deposit. The amount will be deposited in the name of the Deputy Divisional Officer, Belgaum. The Belgaum Corporation Commissioner will submit the deposition document to the High Court today.
The financial strain is linked to a Smart City project road construction in Belgaum South constituency. The project, started in 2021, faced issues due to the lack of land acquisition, leading affected landowners to seek compensation from the High Court. The corporation’s account currently holds 39.94 crores. After the 20 crores deposit, only 1 crore will remain, with the rest allocated to ongoing work and staff salaries.
The corporation faces a monthly challenge to pay staff salaries and fund development work in 58 wards. With insufficient funds, there are calls for due tax collection or special government grants. The High Court had reprimanded the Corporation Commissioner on August 22 for not meeting deadlines. The corporation faces contempt of court in six additional cases, totaling 150 crores.
