Apart from property tax collected locally, SCB receives no regular funds from either the Union or the state government, despite being a civic body governed by both.
Hyderabad:With nearly Rs 1,300 crore in pending dues from the Centre and the state, the Secunderabad Cantonment Board (SCB) is facing an alarming cash crunch, forcing it to delay salaries and stall development works. Staff are now worried they may not receive full salaries in July.
The Board hasn’t cleared Rs 4 crore in pending arrears and allowances to nearly 400 employees, dating back to 2018. Apart from property tax collected locally, SCB receives no regular funds from either the Union or the state government, despite being a civic body governed by both.
The bulk of the dues — a total of `1,152 crore — comprises service charge arrears owed by the Army. Sources in the Board say the last full payment from the Army came over three decades ago. “The financial situation is dire. Without the release of the arrears, we cannot fulfil our responsibilities,” a senior SCB official said. Even promises from local MP Etala Rajendar to expedite the matter yielded just `4 crore in two years.
State-run institutions haven’t paid their dues either. Since the formation of Telangana, the state has diverted transfer of property charges — meant to go directly to SCB — into its accounts, following changes in the registration process. Legal petitions are pending in the High Court challenging this diversion.
Arrears in transfer of property charges alone now stand at `49.58 crore. Hyderabad Metro Rail Limited, which is under the state government, has `9.61 crore in unpaid licence fees. Altogether, dues from state-run bodies exceed `50 crore.
The Board’s tax revenue covers only salaries, leaving no scope for development works. Officials say that unless the Centre and the state settle the arrears or share a part of the GST collections with SCB, the civic body will struggle to function.
Despite these challenges, Army authorities continue to hold significant influence in Board decision-making, with military approval required for key civic matters. Officials say the imbalance in power and funding has left SCB paralysed and unable to meet even basic civic obligations.
