Pune: PMC Suffers ₹2 Crore Loss Due To Delay In Renewing Fixed Deposits; Officer Served Show-Cause Notice
Pune: PMC Suffers ₹2 Crore Loss Due To Delay In Renewing Fixed Deposits; Officer Served Show-Cause Notice
Pune, June 15, 2026: The Pune Municipal Corporation (PMC) has reportedly incurred a financial loss of nearly ₹2 crore due to delays in renewing matured fixed deposits, exposing lapses in financial management within the civic administration.
According to PMC officials, the loss occurred after a fixed deposit that had matured remained parked in a savings bank account for nearly a month instead of being renewed on time. The delay resulted in a significant loss of interest income to the civic body. Following the incident, the Municipal Commissioner has issued a show-cause notice to the concerned officer seeking an explanation for the lapse.
PMC regularly places surplus funds, including government grants, tax revenues collected from citizens, and contractors’ security deposits, in fixed deposits to generate additional income. More than ₹5,000 crore of the corporation’s funds are currently invested in fixed deposits across various banks.
One of the deposits matured in May 2026, and officials were expected to prepare and obtain approval for its renewal before the maturity date. However, the Finance and Accounts Department reportedly submitted the renewal proposal to Additional Municipal Commissioner Pavneet Kaur only 15 days after the deposit had matured.
As the deposit was not renewed on time, PMC is estimated to have suffered a loss of around ₹1 crore by June 1, which later increased to nearly ₹2 crore. Following the discovery, Pavneet Kaur reportedly brought the matter to the attention of Municipal Commissioner Naval Kishore Ram.
The Commissioner subsequently issued a show-cause notice to Accounts and Finance Officer, seeking clarification on why the fixed deposit was not renewed within the stipulated timeframe.
Meanwhile, during the Standing Committee meeting held on Friday, approval was granted to place five new fixed deposits totaling ₹1,250 crore. Standing Committee Chairman Shrinath Bhimale acknowledged that the financial loss had occurred due to administrative lapses.
The approved deposits include one deposit of ₹210 crore, two deposits of ₹150 crore each, and two deposits of ₹350 crore each, amounting to a total investment of ₹1,250 crore.
Under existing government policy, the Municipal Commissioner has the authority to approve 70 percent of fixed deposits, while the Standing Committee can approve the remaining 30 percent. Accordingly, the Standing Committee approved three deposits—two worth ₹150 crore each and one worth ₹210 crore—while the Commissioner approved two deposits of ₹350 crore each.
The incident has raised concerns about accountability and financial oversight within the civic administration, especially at a time when the municipal corporation is actively seeking ways to enhance revenue generation.
