2.92 crore market recovery contract fails, raising doubts about municipality's direct collection

City News Mumbai/Gani Khan

The market tax collection system in the Bhiwandi Nizampur Municipal Corporation’s Market Department is once again under scrutiny. After the company that had secured the annual market collection contract worth approximately 2.92 crore rupees left, the municipality has reportedly taken over direct collection. In the meantime, questions have arisen about the monitoring of collections and the transparency of the amounts deposited into the municipal treasury.

Previously, “Pest Control Management Private Limited” had been awarded the market collection contract at an annual rate of about 2.92 crore rupees. The company’s arrangement involved collecting 15 rupees from street vendors, 30 rupees from handcart operators, and 60 rupees from large stalls each day. It is alleged that citing losses, the company abandoned the collection work after roughly six months, after which the municipality cancelled the contract.

Following the contract’s termination, the Market Department has reportedly taken over the collection itself. Locally, there are accusations that, due to a shortage of staff, private manpower is being employed for collection. However, when the department head, Snehal Punyarthi, was contacted on mobile, he clarified that no private individual has been engaged for the collection.

When asked how much market tax is collected daily under the municipality’s current arrangement and how much is deposited into the municipal account, a clear figure was not provided. This is the most critical question in the entire matter. When a private company was awarded a contract for annual market collection of 2.92 crore rupees, and now the municipality is collecting directly, how much is collected each day? How much is deposited into the municipal account, and which officer is responsible for monitoring the collection?

Because collections are made from street vendors, handcart operators, and small to large shopkeepers, a large number of transactions occur daily. In such a scenario, the receipt of collections, daily deposits, and the accountability records of the relevant staff must be transparent.

Local citizens have demanded a thorough audit of the entire market tax collection system and the public disclosure of daily collections and the amounts deposited into the municipal account. They argue that this will dispel doubts about the collection system and reveal the true revenue picture.

Now it remains to be seen whether the Market Department will publish the daily collection figures and deposit details.