Amritsar, May 14
The revival of octroi notwithstanding, the local Municipal Corporation has been facing an unprecedented financial crunch, mainly due to the snapping of Indo-Pak trade ties, thereby making it difficult for the new team of councillors to clear the financial mess.

Amount worth crores has been outstanding against the corporation and hence it would be difficult to carry out developmental activities in the city. Moreover, the state government has directed the corporations not to carry out any new project which could adversely affect the payment of salaries, operation and maintenance of drinking water, sewerage facilities and payment of loans etc.

The corporation has been receiving reminders from contractors and different departments, including the PSEB, for clearing the outstanding amounts. Recently, Mr C.J. Roy, Chief Engineer (Operation, Border) has sent yet another reminder to Mr Jasbir Singh Bir, Commissioner, to clear a payment of Rs 2.48 crore which had been outstanding on account of unpaid electricity bills etc till April 30, 2000.

It may be mentioned here that when Mr Bir joined the corporation in March this year, he was greeted with angry demonstrations by employees who were not paid salaries after the abolition of octroi. Mr Bir was shocked to learn that the corporation was facing a number of litigations by the contractors and other parties who moved the court for getting their payments realised.

The loss of revenue in shape of octroi after the closure of Indo-Pak trade (after attack on Parliament on September 11 last year) is stated to be more than Rs 1 crore per annum. Loss of more that Rs 2 crore per annum was incurred when the Indian Oil Corporation stopped paying octroi on the oil which is not used for local consumption in wake of a Supreme Court ruling. Another setback to the revenue of corporation has been the stopping of the octroi by Bharat Sanchar Nigam Limited (BSNL), which is approximately Rs 50 lakh per year. The shifting and closure of processing units has also depleted the revenue of the corporation.

As per the official records, the corporation has yet to clear the long-pending bills of contractors to the tune of Rs 10 crore. A credit of Rs 2.10 crore taken from the Oriental Bank of Commerce for constructing a shopping-cum-parking complex is yet to be cleared. The interest on the loan of Hudco (Rs 30 lakh quarterly) and audit fees of Rs 28 lakh etc could not be paid so far. The corporation has not received a matching share of approximately Rs 4 crore on account of octroi revenue.

When contacted, Mr Bir claimed that he was instrumental in the increase of the revenue collection by more than 25 per cent from house tax, rent of buildings, water supply and sewer charges etc as compare to the corresponding period last year.

Mr Bir said the corporation had imposed a ban on the fresh recruitment in wake of the prevailing financial situation. He said no vacant post would be filled in the near future.