Pune: PMC's ₹500 Crore Cosmos Bank Deal & Sweeping Contract Extension Under Fire

Pune's Municipal Corporation (PMC) is facing criticism over a proposed Rs500 crore fixed deposit and Rs450 crore overdraft facility with Cosmos Co-operative Bank, as well as the extension of sweeping contracts worth nearly Rs100 crore without fresh tenders. PMC Corporator Arvind Tukaram Shinde has questioned the administration's decision-making, alleging that these proposals bypassed established procedures and could lead to financial losses for taxpayers.

Shinde has submitted letters to the Municipal Commissioner, demanding intervention in the matters. He claims that the proposals were rushed through the Standing Committee without sufficient scrutiny. Shinde questions why PMC is considering a financial arrangement with a single co-operative bank, rather than inviting competitive offers from multiple banks.

He also points out that Cosmos Bank, being a co-operative bank, does not meet PMC's investment guidelines, which require investments only in nationalised banks and the RBI's Domestic Systemically Important Banks. Shinde argues that the financial implications of the deposit and overdraft could burden the civic body, as PMC is already paying Rs57 crore annually in interest on its existing bonds.

He also criticizes the two-year extension of sweeping contracts, alleging that the original work was awarded without a proper tender process and that the administration should have invited fresh bids instead. Shinde raises concerns over attendance monitoring, suggesting that contractors are recording their own workers' attendance without adequate PMC supervision.

He demands cancellation of the contract extensions and a fresh tender process, insisting that the Municipal Commissioner has the authority to withhold implementation of decisions that may not be in the city's best interest, even if approved by the Standing Committee.