BBMP CAO blamed for huge loss to the civic body

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BANGALORE: Janata Dal (S) Floor Leader in the BBMP Council, Padmanabha Reddy, has demanded that action be taken against the Palike..

BANGALORE: Janata Dal (S) Floor Leader in the BBMP Council, Padmanabha Reddy, has demanded that action be taken against the Palike's Chief Accounts Officer (CAO) for causing huge monetary loss to the civic body.
Reddy on Saturday alleged that it was because of the CAO's negligence that the Palike had to pay more than `4.06 crore as interest to banks for money borrowed under Hundi system.Under the Hundi system, contractors could produce bills (of the works they have done for BBMP) at certain banks with whom the Palike had signed a deal.

These banks were to pay the contractors when the BBMP was short of funds. The banks retained 6.5 per cent of the total bill and the civic body had to pay them back within six months.

On the sidelines, Reddy criticised the BJP for the Palike's state of affairs. He noted that contrary to what was mentioned in the Palike's budget for 201011, the State government had not releases `2,800 crore grants.