Chandigarh, February 25, 2025 – The Hon’ble Mayor of Chandigarh, Smt. Harpreet Kaur Babla, held a crucial meeting today with Shri Rajiv Verma, IAS, Chief Secretary, UT Chandigarh, at his office. During the meeting, the Mayor extensively discussed and apprised the Chief Secretary of the financial health of the Municipal Corporation Chandigarh (MCC) and the challenges being faced in delivering essential civic services to the residents.
Mayor Harpreet Kaur Babla expressed serious concerns about the financial condition of the Municipal Corporation Chandigarh, highlighting that despite providing numerous essential services to the people, the Corporation is not generating any direct revenue from these services. She pointed out that MCC is responsible for maintaining the basic infrastructure and civic amenities in the city, which include:
Repair and maintenance of streetlights across all sectors and roads in Chandigarh.
Sanitation services, including door-to-door garbage collection and cleanliness drives.
Stray animal management, which involves providing green and dry fodder for stray animals, especially cows.
Sterilization of stray dogs to control their population and ensure public safety.
Re-carpeting of roads to maintain the city’s infrastructure and ensure smooth transportation for residents.
The Mayor emphasized that all these services involve substantial expenditures, but the Corporation is not earning even a single penny in return. This, she said, has placed a significant financial burden on MCC, limiting its ability to expand and enhance public services.
Unpaid Service Tax by the Engineering Department
A key issue raised by the Mayor during the meeting was the non-deposit of service tax by the Engineering Department of Chandigarh Administration on commercial and residential buildings. She informed the Chief Secretary that:
The service tax amounting to ₹16.35 crore approximately on commercial buildings has not been deposited.
The service tax amounting to ₹65.78 lakh approximately on residential buildings remains unpaid.
The Mayor urged the Chief Secretary to take immediate steps to resolve this issue and ensure that the pending service tax is deposited at the earliest. She stressed that these funds, if recovered, could be utilized for improving municipal services and infrastructure in the city.
Request to Increase Cow Cess on Liquor
Another important concern raised by Mayor Harpreet Kaur Babla was regarding the reduction in cow cess imposed on liquor by the Excise and Taxation Department in 2023-24. She pointed out that in the year 2020, the Secretary Local Government (SLG) Chandigarh Administration Chandigarh had passed a notification approving a specific rate of cow cess to be imposed on liquor sales. However, the Excise and Taxation Department later reduced this cess, resulting in a decline in revenue for the MCC.
The Mayor requested the Chief Secretary to reinstate or increase the cow cess to the levels specified in the 2020 notification. She highlighted that this revenue is crucial for the upkeep of stray cows and other animal welfare initiatives in Chandigarh. The MCC utilizes these funds to provide food, shelter, and medical care for stray cattle, ensuring their well-being and preventing them from becoming a nuisance on city roads.
She urged the Chief Secretary to support the MCC in securing additional funding from the Union Government as well as Chandigarh Administration and to expedite pending financial allocations from the administration.
Chief Secretary Shri Rajiv Verma, IAS, assured the Mayor that her concerns would be taken up with the relevant departments on priority. He acknowledged the significant role played by the MCC in maintaining Chandigarh’s status as a model city and assured that the administration would provide all possible support to address the financial issues.
The Chief Secretary also stated that the matter of non-deposit of service tax by the Engineering Department would be taken up with Secretary Engineering Ms Prerna Puri IAS, and necessary steps would be taken to recover the pending amounts.
Regarding the cow cess on liquor, he assured the Mayor that the Excise and Taxation Department would review the matter and take a decision in line with the interests of the municipal corporation and the welfare of stray animals.
Mayor Harpreet Kaur Babla reiterated her commitment to working for the welfare of the people of Chandigarh. She assured that despite financial constraints, the MCC would continue to provide the best possible civic services to the residents. However, she emphasized the need for better financial planning and increased revenue generation to ensure that Chandigarh remains a clean, green, and well-maintained city.
She also appealed to citizens to cooperate with the MCC in its efforts, urging them to pay their property taxes on time, follow sanitation guidelines, and contribute to making Chandigarh a better place to live.
The meeting between Mayor Harpreet Kaur Babla and Chief Secretary Rajiv Verma was a significant step towards addressing the financial challenges of the Municipal Corporation Chandigarh. With the administration’s support, it is expected that necessary reforms and financial measures will be taken to strengthen the municipal body, enabling it to serve the residents of Chandigarh more efficiently.
The Mayor expressed gratitude to the Chief Secretary for his time and support and looked forward to further discussions and actions to ensure a financially sustainable and well-functioning MCC.