The Calcutta Municipal Corporation (CMC) had initially allotted a prime plot at Park Circus for installation of the statue, but later asked the committee not to go ahead with the project.

City Mayor Prasanta Chatterjee said the decision was taken after CMC received a letter from the Missionaries of Charity (MC) asking it not to grant permission for the project. The MC objected to the fund-raising by the committee.

The CMC then moved the Calcutta High Court against revocation of permission. The matter was still being heard.

As per a council resolution, the decision to disband the committee was taken ``as it could not serve any useful purpose in view of CMC's revocation and the matter being sub-judice''.

Notwithstanding the official reason cited in the resolution,council president and and committee secretary Anthony Arun Biswas said, the decision to dissolve the committee was taken as its chairman Shyam Sundar Gupta was taking steps which were ``an insult to the memory of Mother Teresa.''

He accused Gupta of raising funds ``illegally'' and ``using the committee to his own advantage''.

While Biswas said that the resolution was adopted unanimously, Gupta, a former mayor, said he was not aware of any such resolution and accused the former of backtracking under pressure from his community.

Gupta said the resolution was not tenable as the council was also a party in the petition filed in the High Court.

Both Biswas and Gupta held separate functions to observe Mother's first death anniversary today. While Biswas attended the unveiling of Mother's statue at sculptor Goutam Paul's Salt Lake residence, Gupta held a prayer meeting at the memorial committee office in the city.