In a significant financial recovery, the Mormugao Municipal Council (MMC) has successfully reclaimed outstanding dues amounting to Rs 5 crore from the Indian Oil Corporation Ltd (IOCL). The action follows a stern notice issued by the civic body, threatening to halt the corporation's operations on municipal land if the long-pending amount was not cleared.
Notice and Recovery of Principal Amount
MMC Chief Officer Siddhivinayak Naik had served a formal notice to IOCL, warning of a potential shutdown of their activities on the council's land for non-payment. This decisive move prompted the oil giant to settle the principal dues. However, Naik clarified to the media that the recovered sum represents only the core amount owed. The municipality is now poised to pursue the substantial interest accrued on this debt.
Interest Waiver Appeal Sidelined
Naik revealed that while the principal of Rs 5 crore has been received, the council will formally demand an 18% interest on this amount, which is calculated to be approximately Rs 3.5 crore. He stated that IOCL officials, during a meeting with the state chief secretary, had appealed for the interest component to be waived. "However, we have sidelined their request," Naik asserted, indicating the MMC's firm stance on recovering the full financial liability.
Funds to Benefit Employees and Laborers
The successful recovery is set to have a direct positive impact on the municipality's workforce. MMC Chairperson Girish Borkar outlined the planned utilization of the funds. He announced that the council would now be able to provide medical allowances to its employees, a demand that has been pending since 2022. Additionally, the arrears of laborers who have been granted temporary status by the state government will also be cleared using these funds, bringing financial relief to a significant number of workers.
This recovery operation underscores the proactive approach of the Vasco-based municipal council in enforcing financial accountability and securing resources for local governance and employee welfare.
