Chennai Mayor writes to CM Vijay over fund crunch as DMK councillors protest

Chennai Mayor R Priya has written to Chief Minister Vijay seeking the release of pending funds for councillors and the Mayor's Special Fund, marking the first direct communication between the DMK Mayor and the TVK government since it assumed office.The letter comes amid growing friction between the DMK-controlled Greater Chennai Corporation (GCC) and the TVK government over the delay in releasing funds for civic works.Priya has sought the release of Rs 60 lakh allocated annually to each councillor for ward-level development works, along with around Rs 3-4 crore under the Mayor's Special Fund.Chief Minister Vijay is yet to respond to the letter. DMK COUNCILLORS PROTEST IN BLACKThe funding dispute spilled into the Corporation Council meeting on Friday, with DMK councillors turning up in black attire to protest against the TVK government.The councillors alleged that the state government's failure to release their annual ward development funds had stalled several civic works across Chennai. The Rs 60-lakh allocation allows councillors to undertake smaller development works in their respective wards. According to the protesting councillors, the delay in releasing the money has affected infrastructure and basic civic projects.The protest marks an escalation in tensions between the DMK-led civic body and the Vijay government over the Corporation's finances.GCC FACES NEARLY RS 2,000-CRORE DEFICITThe dispute comes as the Greater Chennai Corporation grapples with a severe financial crunch.Several civic officials earlier told India Today that the Corporation had nearly Rs 2,000 crore worth of unpaid bills and an overall fiscal deficit of Rs 1,970 crore at the end of March 2026."Because of the major financial crunch, the overall deficit has surged to Rs 1,970 crore by the end of March 2026. Nearly Rs 2,000 crore bills are pending in the GCC as of today," a senior GCC official had said.The financial burden could increase further during 2026-27. Officials estimate that another Rs 1,500 crore in liabilities could accrue during the financial year, potentially taking pending commitments to around Rs 3,500 crore.WHY GCC IS SHORT OF FUNDSThe Corporation has acknowledged the financial strain and attributed it largely to spending on civic infrastructure, recurring maintenance commitments and major projects undertaken using its own resources."The fund crunch is mainly due to works undertaken in civic infrastructure, maintenance commitments and taking up big-ticket projects using our own funds," the GCC said in a financial note shared with India Today.The Corporation has since stepped up efforts to increase its own revenues.Its Revenue Department carried out an intensive property tax collection drive in July, collecting Rs 158 crore compared with Rs 61 crore during the corresponding period in July 2025.Despite the increase in collections, Asia's oldest municipal body continues to face pressure from outstanding bills and spending commitments.- EndsPublished By: Aprameya RaoPublished On: Aug 28, 2026 20:45 IST