CUTTACK, DEC 26: The Orissa High Court has stayed the operation of a state government order for dissolution of the Cuttack Municipal Corporation (CMC) council on charges of gross Financial irregularities and incompetence.The interim stay was granted by a division bench comprising acting Chief Justice R K Patra and Justice Choudhury P K Mishra recently after hearing a writ petition filed by corporation chairman Ashirbad Behera and 34 other councillors of various political parties.
The petitioners challenged the November 23 notice of the director, municipal administration, to all the councillors to show cause within 30 days as to why the government should not dissolve the council and recover the amount running into crores of rupees spent by them illegally and without government approval.
Based on a special audit report on the affairs of the CMC, the notice said the government proposed to dissolve the council under section 401 of the Orissa Municipal Act, 1950 as the council was not only found to be incompetent but also exceeded and abused its powers causing huge loss of revenue.
The government charged the corporation with having violated Rule 443 of Orissa municipal rules, 1953 by illegally diverting the employees' provident fund and LIC premiums for which heavy interest was required to be paid to the subscribers.
However, the elected council members dubbed the government action, based on the audit report, as palpably illegal, without authority and application of mind. They argued that the council which assumed charge in July, 1997 had discharged its duties in accordance with the law and there had been no allegation against its functioning by the concerned authorities. The council's term expires in July, 2002.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
