Naveen D'Souza, Opposition Leader in Council of the Mangaluru City Corporation (MCC), said he would file a complaint to the secretary of Urban Development department, Minister of Urban Development and Chief Minister against MCC's taking a loan worth Rs 27.25 crore from the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) for minor work.
"MCC can raise loans for carrying out major projects in city. We are not opposed to it. But do minor works, such as building retaining walls, constructing storm water drains, asphalting short stretches of roads require a loan?" he stressed addressing media persons at Congress Bhavan. “There was no approval from government for borrowing loans. We will urge UD secretary and the minister concerned not to give approval for such loans,” he said.
He also urged the MCC to issue a white paper on the financial status of corporation. "A white paper will help the people realise the financial health of MCC. Mayor should have convened a meeting of opposition leaders before approving the agenda for raising loan from KUIDFC," D’Souza said.
Further, he alleged that an action plan for works to be carried out from loans borrowed was submitted by BJP MLAs. As according to convention, it is Mayor and Corporators who decide on the action plan for the development works to be initiated through MCC funds, he said.
Congress is likely to take up the issue and stage protests.
Former mayor and corporator Shashidhar Hegde said raising loans for carrying out major development works are common in ULBs. There is no revenue generated from money invested on the works proposed by MLAs. MLAs should get special grants from government for carrying out developmental works in city instead of using MCC grants, he added.