MCD caused Rs 500 crore loss to exchequer: Govt to HC
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Last Updated: Wednesday, May 04, 2011, 21:30
New Delhi: The MCD had caused a loss of about Rs 500 crore to the public exchequer in past five years by paying salaries to thousands of ghost employees; the city government on Wednesday informed the Delhi High Court.

The Delhi government also contended that the Municipal Corporation of Delhi pegged the number of ghost employees at different level in its various lists given to police making the probe into the case difficult after which the court directed MCD commissioner to file a detailed affidavit specifying the categories of employees and their work profile within three weeks.

Appearing before the division bench of Chief Justice Dipak Misra and Justice Sanjiv Khanna, government counsel Najmi Waziri submitted that the civic body has caused a loss of at least Rs 99.33 crores every year due to payment of a minimum salary of Rs 5000 to each of its 16,555 ghost employees.

This entails a minimum loss of Rs 496.65 crore over the last five years, he said.

The counsel contended that the civic agency had given to the Delhi police conflicting figures about the total number of its employees, making it difficult to probe into the scam.

He said a list of 1,24,388 number of total employees was submitted to police in May last year and now the number of total employees have gone up to 1,43,216 by May 2, 2011.

"The MCD is not able to show how many substituted employees have been engaged and how they have been paid and what work has been taken from them," Waziri told the bench, adding frequent changes in the figures and incomplete date were a handicap during investigation.

Accepting the counsel's submissions, the court directed the MCD commissioner to file a detailed affidavit specifying the categories of employees and their work profile within three weeks before the court.

"Any corporation which deals with public exchequer is accountable to the public, how it spends money and whether the employees have been really engaged and performed their duties to earn their salaries," the court noted.

In May last year, the court had directed city police chief to conduct an independent inquiry into the MCD's 'ghost' employees scam after allegations that a probe by the civic agency would not be proper.

The court was hearing a public interest litigation filed by Jagrook Welfare Society through counsel C S Parashar, seeking a probe by the CBI or an independent agency probe into the scam.

After a media report in November, 2009, the MCD revealed that there were 22,853 gardeners and sweepers as 'ghost' employees on its payrolls and salary had been drawn on their behalf despite the fact they were actually not engaged.


First Published: Wednesday, May 04, 2011, 21:30

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