Recovery of ₹ 23 crore from manpower agencies

Chhatrapati Sambhajinagar

The municipal corporation discovered that three manpower agencies failed to pass on the increased Dearness Allowance (DA) to their employees. Following an audit, notices were issued to the agencies, directing them to pay Rs 23 crore within a month.

Around a year and a half ago, the municipal corporation hired employees through Maharana, Galaxy, and Ashoka Agencies on a contractual basis. Employees reported receiving lower salaries than agreed, despite DA increases. For example, a cemetery worker's salary increased from Rs 20,702 to Rs 31,640, a driver’s from Rs 16,256 to Rs 28,530, and a peon's from Rs 18,256 to Rs 31,620 over 18 months.

An audit revealed unpaid contributions to PF/ESIC and discrepancies in salary payments. Maharana Agency owes Rs 22 crore, Galaxy Agency Rs 99.76 lakh, and Ashoka Agency Rs 45 lakh. The administration has ordered recovery of these amounts for pending retirement benefits. In addition, Administrator G. Sreekanth announced that files involving expenses over Rs 10 lakh will now undergo internal audits before bill finalization.