Nashik Smart City funds worth Rs 4.23 crore remained unused in the project corporation’s Single Nodal Agency account as of October 4, prompting Maharashtra’s urban development department to seek an explanation and putting the money, along with Rs 27.66 lakh in accrued interest, under review.
The action follows directions from the Union ministry of housing and urban affairs (MoHUA), which has sought details of unspent balances held by Smart City corporations. In a communication issued on October 16, the state government directed all Smart City corporations in Maharashtra to explain funds remaining in their SNA accounts.
The Nashik Municipal Smart City Development Corporation Limited (NMSCDCL) was asked to account for the Rs 4.23 crore balance and explain the interest earned on the Centre’s share of funds. Smart City corporations were instructed to submit detailed responses by October 19.
An official cited in the report said the state government had warned that unsatisfactory explanations could lead to recovery of the unspent funds and the corresponding interest. Authorities have also been asked to disclose whether any part of the accrued interest has already been returned to the state or central government.
The review is not limited to Nashik. Similar unspent balances have been flagged in Smart City corporations in Pune, Solapur, Nagpur, Chhatrapati Sambhajinagar, Thane and Kalyan-Dombivli. The Centre has sought clarifications on why funds remained unused despite the completion of multiple phases of the Smart Cities Mission.
Nashik’s Smart City corporation has implemented projects covering integrated surveillance systems, mobility initiatives, civic infrastructure upgrades, beautification works and public utility facilities. The latest directive is expected to require the corporation to examine its pending liabilities and ongoing commitments before explaining why the money remains parked in the SNA account.
The issue comes as the Smart Cities Mission approaches closure, bringing greater attention to the utilisation of funds released for urban projects. The state government will decide the next course of action after examining the responses submitted by the concerned corporations.
