Building cess spent on employees' salary

MUMBAI: It has been revealed that the Mumbai Building Repairs and Reconstruction Board (MBRRB) worked under MHADA, spends half of its collected cess (tax) amount to pay employees salary. The cess is meant only to repair and reconstruct old and dilapidated buildings, mostly located in South Mumbai.
The Repair Board has formed in 1971 aiming for repairs and reconstruction of old and dilapidated cessed buildings in Mumbai.The city has over 14,000 cessed buildings and most are in danger to live. The board worked under MHADA, state government agency.
Every year, Board collects over Rs 100 crore as cess from tenants living in old and dilapidated buildings. Surprisingly, half of the cessed amount, Rs 50 crore, spends on their employees, which actually meant to repair and maintain the buildings.
Ravindra Waikar, minister of state for housing department hold a meeting on Wednesday and asked MHADA not to spend salary from the cess fund. Waikar written a letter to the MHADA vice president SS Zende instructed the cess fund should be only spend on the building repair and reconstruction.
“The salary can be paid from the MHADA budget or Slum Rehabilitation Authority (SRA) which has Rs 2,500 crore savings in bank, but not from the cess fund,” Waikar said.