Fund Diversion Row Rocks Bhopal Municipal Corporation Council Meeting

The Bhopal Municipal Corporation (BMC) Council meeting was marred by controversy over allegations of diverts funds from the 12 Number Stop housing project to the stalled Baghmugalia Housing for All (HFA) project. This issue came to light when leader of opposition Shabista Zaki questioned the corporation's handling of funds meant for the economically weaker sections (EWS).

Corporation MiC member Chhaya Thakur admitted that officials failed to provide her with adequate information on the fund transfer, expressing frustration over being sidelined despite serving as MiC for four years. When asked about the total cost of the projects and details of payments to contractors, Thakur was unable to provide clear answers.

The Baghmugalia HFA project, launched in 2019, was intended to construct 768 housing units, with 768 units later completed by a new contractor in 2024. However, the original contractor repeatedly sought extensions before the contract was terminated by the corporation in 2024 due to breaches of contractual conditions.

Funds for the Baghmugalia project were initially booked under Project No. 12, linked to the 12 Number Stop project, despite the two blocks meant for EWS beneficiaries being surrendered to the Urban Administration and Housing Department (UADD). The corporation claims the fund adjustment was made after approval from the Mayor-in-Council, citing protests by Baghmugalia allottees that affected the government's image.