Faced with acute financial crunch, the Ghaziabad Development Authority (GDA) has obtained Rs 120 crore over draft (OD) limit from Vijaya Bank. The GDA has obtained the OD limit from the bank to pay Rs 50 crore to Delhi Metro Rail Corporation (DMRC) extension project from Dilshad Garden to New Bus stand in Ghaziabad and some other petty projects.
“The rate of interest is levied above 2 to 2.5 per cent against our collateral and GDA is inclined to pay since the delay in the Metro project would be subjected to the more interest rate on the pendency of DMRC bills” said TR Yadav the Financial Controller (FC) of the authority.
GDA was flush with funds when Santosh Yadav was the Chairman cum Vice-Chairman. He had made a fixed deposit for Rs 1,400 crore reserved for DMRC payment in case other funding agencies withdraw from sharing the payment as per the Memorandum of Understanding (MoU). Although the funding pattern was cleared by the State Cabinet but other funding agencies withdrew from sharing payment despite Cabinet approval from the State Cabinet.
“But that fixed deposit was used in other projects like Samajwadi Avas Yojna. Only Rs 300 crore remained with GDA from which recurring expenditures were to be made. From this amount we made a fixed deposit of Rs 125 crore. By pledging this fixed deposit we obtained Rs 120 crore over draft limit. Which was the need of time” added FC.
The existing GDA administration utilised the term deposit Rs 1,500 crore amount in other housing schemes especially in Samajwadi Housing scheme whose target was already completed by the authority said Rajendra Tyagi alleged the social activist and the municipal councillor of Raj Nagar area.
As a result of the financial mismanagement, GDA landed in financial mess. Simultaneously other funding agencies could not contribute their share and the union government share also could not be materialized in want of revised DPR approved by the state cabinet, added Tyagi.
During the acute financial crunch the GDA has to bear the load of Rs 4 Crore per month for the salaries, Rs. 963 Crore for ongoing development and construction projects, Rs. 30 Crore for maintenance of parks and Rs. 1.75 Crore to maintain buildings. GDA’s revenue has dipped drastically. Only Rs. 67 Crore was being received as development charges, Rs. 88 Crore as compounding charges, Rs. 10 crore as land use charges, Rs. 65 crore as FAR charges, Rs. 11.50 as impact charges, Rs. 16 crore as sub division charges.
Earlier the GDA sought the approval of the funding pattern by which the union government was to bear Rs. 700 GDA was to bear Rs. 695 crore, Municipal Corporation to share Rs. 246 crore, Housing board to share Rs. 44 crore and UPSIDC to share Rs. 97crore. The government of UP approved the funding pattern and draft of the MoU with the DMRC. So the GDA entered in to the MOU with DMRC. DMRC project is facing lack of finances to complete the project despite being approved by the state cabinet. As a result the ongoing project is running behind the schedule, said a GDA official.