Pune: PMC May Lock Rs 1,500 Crore of Budget in Ongoing Projects, Leaders Warn

Pune, 28th March 2026: Leaders from across party lines in the standing committee of the Pune Municipal Corporation (PMC) on Friday raised concerns over the civic administration undertaking large-scale projects without adequate budgetary provisions.

During the meeting, members pointed out that major projects should ideally have at least 50 percent financial provision in the budget before they are taken up.

However, several major projects initiated over the past year lack such allocation and have instead been approved under Section 72(B) of the Maharashtra Municipal Corporation Act, 1949, which allows the administration to take on future financial liabilities.

Members from all parties expressed apprehension that if a significant portion of PMC’s revenue is diverted to these committed projects, there will be little funding left for other development and capital works in the coming year. They unanimously directed the administration to submit a detailed report within eight days on the total financial liabilities accepted over the past year.

The administration had placed proposals seeking approval for funding under Section 72(B) for seven projects. While the standing committee approved the Keshavnagar (Mundhwa) water supply scheme, the remaining six proposals were deferred following concerns raised by members.

Several leaders also pointed out that repeated use of Section 72(B) could result in nearly ₹1,000 to ₹1,500 crore from the 2026–27 budget being tied up in ongoing commitments, limiting the corporation’s ability to undertake new works. They warned that such practices could affect financial discipline and planning.

Standing committee chairman Shrinath Bhimale acknowledged the concerns and directed officials to present a comprehensive report.
Meanwhile, a proposal for a flyover and underpass at Chandni Chowk on Paud Road, estimated to cost ₹200 crore, triggered a heated discussion. While the administration proposed phased funding over three years, differences among members led to a sharp exchange during the meeting, sources said.

Section 72(B) deals with financial liabilities of the corporation and requires approval from the general body for major expenditures, particularly for large infrastructure projects and long-term commitments.