The diversion came to light during a recently held meeting which was attended by a five-member team of consultants engaged for the Smart City project and government officials.
“While Rs 5 crore was used to clear the EB bill, another Rs 100 crore was diverted to carry out the underground drainage work,” sources added.
The Smart City project in Vellore includes development of various civic facilities like establishment of 15 new parks, laying of roads with pavements for a distance of 32 km, augmentation of water supply, measures for free traffic movement and total solid waste management.
The consultants, who were in the city a few days ago to study the traffic movement using drones, visited several arterial areas like Mundy Street, Long Bazaar, Arcot Road and Anna Salai.
Subsequently a meeting was held in this connection in which one of the team members wanted to know how the Corporation used the already allotted funds. “A government official confided that funds were diverted to meet the civic body’s urgent needs and that the amount will be paid back at the right time from the latter’s coffers,” sources said.
Meanwhile, the corporation has planned to carry out underground pipe laying work (ducting) in several places like Gandhi Nagar, Krishna Nagar and South Avenue road in Sathuvachary.
The underground ducts would carry all utility cables, including phone and power lines.
When contacted about the fund diversion, Corporation commissioner Vijayakumar replied, “Funds to the tune of Rs 200 crore that we received for the Smart City projects has been deposited in banks.
There has been no diversion of funds. Smart City work is expected to start in two months, when the State government sanctions the estimates sent by the urban body so far.”