Archive · 21 Aug 2026
Fund Diversion Dispute Erupts at Bhopal Council Meeting
A city housing project in Bhopal has caused an argument among council members.
The argument is about money meant for homes for economically weaker families.
The money was originally linked to a project at 12 Number Stop.
Some of it was used for a delayed housing project in Baghmugalia.
The Baghmugalia project began in 2019 but was not finished by its planned deadline.
Its first contractor was removed after failing to complete the work.
The city says the money was shifted because people waiting for Baghmugalia homes staged repeated protests.
The opposition wants clearer information about the transfer and project spending.
A municipal committee member said officials had not given her enough details.
BMC opposition leader Shabista Zaki questioned the alleged diversion of EWS housing funds from 12 Number Stop to Baghmugalia.
The Baghmugalia Housing for All project was launched in 2019 with 768 planned units and was scheduled for completion in 2022.
The original contractor’s agreement was terminated in August 2024 after repeated extensions and failure to complete the project.
BMC records show expenditure on 432 unfinished Baghmugalia units was booked under Project No. 12.
Officials said funds from two surrendered EWS blocks were shifted after protests by Baghmugalia allottees and approval from the Mayor-in-Council.
- Who
- Bhopal Municipal Corporation officials, Mayor-in-Council member Chhaya Thakur, opposition leader Shabista Zaki, contractors and Baghmugalia allottees.
- What
- A council dispute concerned the alleged transfer of EWS housing funds from the 12 Number Stop project to the stalled Baghmugalia Housing for All project.
- When
- The issue was raised on Wednesday; the Baghmugalia project began in 2019, and its original contract was terminated on August 29, 2024.
- Where
- Bhopal, Madhya Pradesh, involving the 12 Number Stop and Baghmugalia housing projects.
- Why
- The BMC said funds were adjusted after protests by Baghmugalia allottees and approval from the Mayor-in-Council, while the opposition sought details about the transfer and spending.
Opposition and Accountability Concerns
BMC Justification
Use of EWS funds
Opposition and Accountability Concerns
Shabista Zaki questioned why funds linked to the 12 Number Stop EWS housing project were used for Baghmugalia and sought details of project costs and contractor payments.
BMC Justification
The BMC said funds from two EWS blocks surrendered to the Urban Administration and Housing Department were added to the Baghmugalia project balance after Mayor-in-Council approval.
Availability of information
Opposition and Accountability Concerns
The opposition highlighted that the responsible Mayor-in-Council member could not provide clear figures on total project costs or contractor payments.
BMC Justification
Chhaya Thakur said corporation officials had failed to provide her with adequate information and claimed she had been sidelined despite serving for four years.
Reason for the transfer
Opposition and Accountability Concerns
The fund booking under Project No. 12 raised concerns that money intended for one housing project had been diverted to another.
BMC Justification
Chhaya Thakur said repeated protests by Baghmugalia allottees at the corporation headquarters, Collectorate and Chief Minister’s residence affected the government’s image and prompted the adjustment.
- Baghmugalia project launch
- 2019
- Planned housing units
- 768: 336 EWS, 288 LIG and 144 MIG units
- Original completion deadline
- 2022
- Original contractor
- M/s Gulshan Rai Jain (Second); work order issued February 4, 2019
- Contract termination
- August 29, 2024, after repeated extensions and non-completion
- Replacement contractor
- M/s Pelji Ratna Sorathia Infra Pvt Ltd; work order issued September 19, 2024
- Units completed by replacement contractor
- 432 unfinished units, according to the article
- Fund adjustment
- Funds for two surrendered EWS blocks under Project No. 12 were added to the Baghmugalia project balance