In a statement to the media on Wednesday, District In-charge Minister Satish Jarakiholi criticized the Belagavi City Corporation’s decision to compensate for work done under the Smart City scheme, citing political interference and financial impropriety. He expressed his disapproval of the Corporation’s decision made on Tuesday, suggesting that the handling of the compensation issue was influenced by political interests.
The controversy revolves around a piece of land acquired for road expansion in Belagavi by the Belagavi Smart City Ltd. The landowner took the matter to court and demanded a compensation of ₹20 crore. The court subsequently ordered that the compensation be paid. Minister Jarakiholi alleged that the responsibility had been improperly shifted to the Belagavi City Corporation due to political manoeuvring.
“It is not right to deposit ₹20 crore into the Special Land Acquisition Officer’s account as compensation,” Jarakiholi stated. “We will explore if it’s possible to save the Corporation’s money. The decision to pay such a high amount appears to have been made under political pressure, particularly on the then Corporation Commissioner, who should also be investigated for his role in this matter.”
Minister Jarakiholi criticized, suggesting that political pressure was exerted to favour the compensation decision.
He further questioned the role of the Corporation’s legal advisers, stating that they should have adequately represented the case in court. “A comprehensive investigation will be conducted under the leadership of the District Collector to uncover any discrepancies,” he added.
Financial Concerns Raised
Minister Jarakiholi also highlighted ongoing financial issues within the Belagavi City Corporation. He pointed out that the Corporation is struggling with revenue collection, with only 40% of expected income being recovered so far. He announced plans to form a special committee to address the issue and directed the District Collector to take steps to improve revenue collection.
Furthermore, he noted that an additional ₹8 crore in GST dues remains unpaid by the Corporation for various business dealings. “The previous commissioner failed to perform his duties effectively and seemed to act as a puppet for certain interests. This mismanagement needs to be rectified,” Jarakiholi asserted.