Mumbai: Samajwadi Party MLA Rais Shaikh Seeks Financial White Paper Before BMC's ₹9,500 Crore Municipal Bond Issue
· Free Press Journal
Mumbai, July 29, 2026: As the Brihanmumbai Municipal Corporation (BMC), Asia's richest municipal corporation, prepares to raise Rs 9,500 crore through municipal bonds, Samajwadi Party MLA Rais Shaikh has demanded a financial white paper, arguing that the civic body must first come clean on its finances before tapping the debt market.
Demand For Financial Transparency
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The BMC plans to raise Rs 9,500 crore through municipal bonds by December. It has appointed AK Capital Services, Tipsons Consultancy Services, and Trust Investment Advisors as merchant bankers for the issue. However, Shaikh alleged that the proposed Rs 9,500-crore municipal bond issue was being rushed without adequate financial disclosures.
"Municipal bonds are debt, and the BMC will have to pay interest. Ultimately, the burden will indirectly fall on Mumbai's taxpayers," he said.
Shaikh claimed the civic body's finances had come under strain due to heavy spending on beautification projects ahead of elections, forcing it to borrow to fund key infrastructure projects, including sewage treatment plants, flood-control works, pumping stations, tunnels, and roads.
Calling it the first municipal bond issue in the BMC's 133-year history, he demanded that the civic administration first release a white paper detailing its financial position, investments, and debt repayment plan.
He also sought an inquiry into the BMC's investments, saying the bond issue should proceed only after the corporation's finances are made fully transparent.
BMC Says Plan Is Preliminary
Civic officials, however, said that the proposed bond issue is still in the planning stage, with the structure, schedule, and projects to be funded yet to be finalised.
"Experts will be appointed to guide the BMC through the bond issuance process," said a senior official.
The BMC is looking to diversify its funding sources for large infrastructure projects by tapping the debt market instead of relying only on internal revenues.
The proposed borrowings could fund projects such as the upgradation of seven sewage treatment plants, the Rs 13,000-crore flood-control plan, pumping stations, tunnels, and major road works, including the Goregaon-Mulund Link Road.
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Before issuing the bonds, the BMC will first seek a credit rating. Merchant bankers will assist in appointing rating agencies and finalising the issue size, repayment structure, and timeline. Officials said municipal bonds typically have a long-term tenure of around 15 years, enabling staggered repayment.
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