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Reading: Contractors meet LG, allege corruption in SMC; Govt orders fact-finding inquiry
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Contractors meet LG, allege corruption in SMC; Govt orders fact-finding inquiry

The News Now News Desk
Last updated: July 11, 2026 12:05 am
The News Now News Desk
Published: July 11, 2026
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SRINAGAR: The Jammu and Kashmir Government has ordered a fact-finding inquiry into allegations regarding the functioning of the Financial Advisor/Chief Accounts Officer of the Srinagar Municipal Corporation (SMC) after a representation submitted to Lieutenant Governor Manoj Sinha by the Jehlum Valley Constructional Contractors Association.

The Housing and Urban Development Department has said the inquiry will ascertain the facts and verify compliance with prescribed financial procedures and payment protocols.

According to Government Order No. 139-JK(HUD) of 2026, the contractors’ association alleged serious irregularities in the functioning of the office of the Financial Advisor/Chief Accounts Officer, prompting the representation to the Lieutenant Governor, which was subsequently endorsed to the Housing and Urban Development Department for examination.

The order states that the representation alleges that despite the Government prescribing an end-to-end online payment mechanism through the Budget Estimation, Allocation and Monitoring System (BEAMS) and JKPaySys for processing and release of payments, an unauthorized practice of routing physical payment requisitions through contractors had been adopted in the Srinagar Municipal Corporation, contrary to established financial procedures and principles of e-governance.

It further notes that the representation alleges contractors were being compelled to personally approach the office of the Financial Advisor/Chief Accounts Officer for processing of their claims, resulting in undue delays in release of payments. The representation also alleges that illegal gratification was being demanded for processing and release of bills, thereby defeating the objectives of transparency, accountability and faceless processing envisaged under the BEAMS and JKPaySys framework. The government order states that if these allegations are found to be true, they may constitute serious violations of prescribed financial procedures, Government instructions governing electronic payment systems, principles of financial propriety and may amount to abuse of official position and misconduct warranting appropriate action.

To conduct the inquiry, the government has appointed Vikas (JKAS), Special Secretary to the Government, Housing and Urban Development Department and Managing Director, AMRUT 2.0, as the Inquiry Officer. Nuzhat Khurshid Qureshi (JKAS), Joint Commissioner (Administration), Srinagar Municipal Corporation, has been appointed as the Presenting Officer and directed to provide all relevant files, records, electronic data, correspondence, payment registers, BEAMS and JKPaySys transaction records and any other documents required for the inquiry.

The Inquiry Officer has been tasked with examining whether prescribed procedures under BEAMS, JKPaySys, the General Financial Rules, Government Financial Code and Treasury Rules were followed; whether unauthorized routing of physical requisitions or payment files through contractors or private persons was adopted; whether avoidable delays occurred in processing contractors’ payments; whether there is evidence supporting allegations of illegal gratification or abuse of official position; and whether adequate internal financial controls and accountability mechanisms exist within the Srinagar Municipal Corporation.

The government has directed the Inquiry Officer to submit a factual inquiry report, along with findings and recommendations, to the Housing and Urban Development Department within ten days of the issuance of the order. It has clarified that the fact-finding inquiry will be without prejudice to any disciplinary, administrative, vigilance or criminal proceedings that may subsequently be initiated on the basis of the inquiry’s findings.

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