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Cut" for speedy payment: Govt orders probe into SMC corruption charges
7/10/2026 10:27:00 PM
Early Times Report

Jammu, July 10: The Jammu and Kashmir government has ordered a fact-finding inquiry into serious allegations of corruption and financial irregularities levelled against the Financial Advisor/Chief Accounts Officer of the Srinagar Municipal Corporation (SMC), following a complaint that accused the officer of running an "institutionalised extortion" racket demanding 1.5 percent commission on contractor payments.
The Housing & Urban Development Department issued the order after receiving a representation from the Jhelum Valley Constructional Contractors Association, addressed to the Lieutenant Governor, alleging that contractors were being forced to bypass the government's online BEAMS and JKPaySys payment systems and were instead compelled to personally approach the Financial Advisor's office to get their bills cleared.
According to the complaint, the Superintending Engineer's office in the Drainage Circle was routing hard-copy payment requisitions to the Financial Advisor even though no rule or circular mandates such physical movement of files. Once a file reached his desk, contractors allege, the officer would summon them and demand 1.5 percent of the total bill amount, openly citing the need to "feed higher officials."
Those who paid up got their funds released within two days, the complaint claims, while those who refused saw their payments stall for up to three months despite funds being available.
The complaint further alleged that entry to the officer's chamber was restricted to contractors "who did the needful," while others were left waiting outside for weeks.
Calling it a policy that "punishes honesty," the contractors' body urged the Lt Governor to order an immediate ACB and Vigilance raid on the officer's office, seize physical files and digital transaction logs, ban all physical movement of requisitions between departments, fix a strict seven-day deadline for release of payments, and suspend the officer pending inquiry to prevent tampering with evidence and intimidation of witnesses.
Taking cognisance of the allegations, the government has appointed Vikas, Special Secretary, Housing & Urban Development Department and Managing Director, AMRUT 2.0, as the Inquiry Officer to probe the matter. Nuzhat Khurshid Qurashi, Joint Commissioner (Administration), SMC, has been named Presenting Officer and directed to furnish all relevant records, including payment registers and BEAMS/JKPaySys transaction data, to assist the inquiry.
The order mandates the Inquiry Officer to examine whether prescribed financial procedures under BEAMS, JKPaySys, the General Financial Rules and Treasury Rules were followed; whether any unauthorised routing of physical files took place; whether payments were deliberately delayed; whether there is evidence of demands for illegal gratification or abuse of office; and whether adequate internal controls exist within SMC to prevent such lapses.
The Inquiry Officer has been given ten days from the date of the order to submit a factual report with findings and recommendations. The government has clarified that the fact-finding exercise will be without prejudice to any disciplinary, vigilance, or criminal proceedings that may follow based on the findings.
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