CHB a ‘pauper’ now,says its chief

The retention of funds on the orders of finance department in a joint escrow account — around Rs 621 crore generated from the tie-up between CHB and Prideasia,a multi-crore real estate project in Chandigarh— has allegedly left the CHB in dire straits.

CHB Chairman Mohanjit Singh,in a strongly-worded note to the Advisor,said: “During the presentation brought to the notice of Advisor to the Administrator,regarding the fragile financial health of CHB,which basically has resulted due to retention of Prideasia funds with the Chandigarh Administration,instead of depositing it with the Consolidated Fund of India (CFI) and bypassing the normal budgetary process on which MHA has raised very serious objections and has also appointed Arun Ramanathan as an inquiry officer on the alleged irregularities in the implementation of some projects,even after the MHA’s objections,no action was taken by the finance department to deposit this money with CFI. The decision on depositing this money with CFI was only taken on the directions of present Administrator in the presentation given to him by finance secretary… His Excellency observed during the presentation that decision to retain the money with the Chandigarh Administration was a ‘blunder’.”

It was on the orders of the finance department that the CHB opened a joint account with Parsvnath builders for the project and the entire money was deposited in the same account.

“A file was sent to the finance secretary that the orders of His Excellency have to be complied with without any further delay. In view of the fact that CHB has no control over these funds,lying in joint account,a request was made to the Administration that directions may be given as to whether we should keep on spending the funds from this joint account and/or we should deposit the money immediately with CFI,as His Excellency had viewed the matter very,very seriously. However,even after the above referred clear cut orders of HE,we received orders from Finance Department on August 6,2010 and accordingly deposited the money with CFI,” the note reads.

It adds: “I may further mention that as a result of opening of this joint account,CHB has been financially hit very hard,because not only the money had to be deposited with the CFI,the income tax department also seized the FDRs of the CHB to the tune of Rs. 328.48 crore,courtesy serious irregularities by the finance department.”

“With deep regret,I would say that because of the above act of opening joint account,a cash rich organisation CHB has been reduced to a pauper. Under the present scenario,CHB may find it difficult to even provide salaries to its employees in the near future,” the note added.

Finance Secretary Sanjay Kumar said he was yet to see the note and would comment only after that.