Coimbatore City Municipal Corporation waives ₹96 lakh debt owed by Tiruvannamalai Municipality for mobile toilets purchased in 2012. Decision made after a decade of unsuccessful recovery attempts and financial constraints.
Coimbatore: The Coimbatore City Municipal Corporation (CCMC) has decided to waive a debt of ₹96 lakh owed by the Tiruvannamalai Municipality for 20 mobile toilets purchased during the Karthigai Deepam festival in 2012.
The Tiruvannamalai Municipality had acquired the toilets from CCMC for ₹1.07 crore to accommodate the influx of pilgrims during the festival. After applying a 10% depreciation, the payable amount was set at ₹96.4 lakh.
Despite numerous reminders sent to the Tiruvannamalai Municipality Commissioner and the District Collector over the past decade, CCMC was unable to recover the amount. The Tiruvannamalai Municipality Commissioner had even appealed to the Directorate of Municipal Administration (DMA) to settle the dues through government schemes, but this request went unanswered.
On July 21, 2024, Tiruvannamalai's municipality commissioner formally requested CCMC to waive the outstanding amount, citing financial difficulties. In response, CCMC, facing its own budget constraints, decided to cancel the debt.
An AIADMK councillor expressed dissatisfaction with the decision, stating, "The Corporation is already struggling to make ends meet. For any additional requirements we propose, we are met with refusal and an explanation regarding the shortage of funds. In this case, it is unacceptable for the CCMC to waive such a large sum. This amount could be used for numerous local developmental projects."
The decision to waive the debt has raised concerns about the financial management of both municipalities and the potential impact on local development projects in Coimbatore.
The Tiruvannamalai Municipality had acquired the toilets from CCMC for ₹1.07 crore to accommodate the influx of pilgrims during the festival. After applying a 10% depreciation, the payable amount was set at ₹96.4 lakh.
Despite numerous reminders sent to the Tiruvannamalai Municipality Commissioner and the District Collector over the past decade, CCMC was unable to recover the amount. The Tiruvannamalai Municipality Commissioner had even appealed to the Directorate of Municipal Administration (DMA) to settle the dues through government schemes, but this request went unanswered.
On July 21, 2024, Tiruvannamalai's municipality commissioner formally requested CCMC to waive the outstanding amount, citing financial difficulties. In response, CCMC, facing its own budget constraints, decided to cancel the debt.
An AIADMK councillor expressed dissatisfaction with the decision, stating, "The Corporation is already struggling to make ends meet. For any additional requirements we propose, we are met with refusal and an explanation regarding the shortage of funds. In this case, it is unacceptable for the CCMC to waive such a large sum. This amount could be used for numerous local developmental projects."
The decision to waive the debt has raised concerns about the financial management of both municipalities and the potential impact on local development projects in Coimbatore.