Chandigarh, March 7 -- Facing a severe financial crunch, the Chandigarh municipal corporation (MC) withdrew Rs.6 crore from its employees' pension fund on Thursday to settle pending electricity bills for the Kajauli Waterworks. This move, aimed at avoiding an Rs.11 lakh penalty for late payment, has intensified concerns about the civic body's precarious financial state.

The MC is burdened with escalating liabilities, including outstanding bills and committed payments totaling at least Rs.100 crore in the fiscal year 2024-25. Salaries for regular and outsourced staff for February and March, contractor payments, and electricity bills remain unpaid as the corporation struggles to generate adequate revenue.

While the MC is actively pursuing...