MCD caused Rs 500 crore loss to exchequer: Govt to HC

Last Updated: Wednesday, May 4, 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

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 4, 2011 - 21:30

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