Chhattisgarh govt overriding powers on ULBs not in spirit with constitutional change: CAG

The Comptroller and Auditor General of India (CAG), in a report tabled in the state Assembly on Tuesday, has observed the Chhattisgarh government had overriding powers over urban local bodies which was against the spirit of the 74th constitutional amendment.

The CAG maintained the advent of Smart Cities has eroded the space of urban local bodies (ULBs).

The report on performance audit on implementation of the 74th Constitutional Amendment Act (CAA) in Chhattisgarh for the year ended March 31, 2020, which was tabled in the Assembly, also pointed that except for the Korba Municipal Corporation, ward and mohalla committees were not constituted in any of the 27 test-checked ULBs. "Barring the constitution of the committee for the Metropolitan Planning, the State Acts/Rules have complied with all requirements as envisaged in the 74th CAA regarding inclusion of codal provisions in the State Acts/Rules. Audit observed that the legal provisions were not backed up by decisive action which goes against the spirit of the 74th CAA. It was also observed that the State Government had overriding powers over ULBs which was against the spirit of the Constitutional Amendment," it said.

The 74th CAA sought to empower ULBs to perform functions and implement schemes in relation to 18 subjects specified in the 12th Schedule.

Audit observed that out of 18 functions, ULBs were solely responsible for eight. These bodies had no role in one function, had dual role in six functions, were mere implementing agencies in two functions, and in respect of regulation of land-use, the ULBs had an overlapping jurisdiction with other departments, it said.

Without complete devolution of functions, the local self-governments cannot be strengthened in the state. The advent of Smart Cities has further eroded the space of ULBs, the report said.

Raipur and Bilaspur, selected to be developed as Smart Cities in Chhattisgarh, were provided financial resources of Rs 1,355 crore during the period 2016-20. With the formation of Smart Cities, the scope and extent of work of ULBs have been further reduced. The devolution of functions in the state has not been completed even after 20 years of its inception, it said.

The ULBs neither have the powers to assess the staff requirement nor to recruit the required permanent staff except on contractual basis. The state government appoints Group A, B and C staff and the powers to regulate their conditions of services, discipline, as well as the conduct are also with the state government, the CAG report said.

Except for the Korba Municipal Corporation, ward and mohalla committees were not constituted in any of the 27 test-checked ULBs, it said.

''This defeated the objective of facilitating community participation in local governance as well as prioritization and monitoring of development works. Meetings of District Planning Committees were not held regularly and consolidated District Development Plans for the District as a whole by considering local needs and matters of common interest were not prepared,'' it said.

The CAG reported said delay in constitution of state finance commissions (first to third) and consequent delay in submission of their recommendation reports and implementation/devolution of funds have adversely affected the financial position of the ULBs.

Devolution of funds is being done as per the Second State Finance Commission even when the constitution of the fifth panel was due, it added.