VPP-led EC accuses MDA of withholding revenue from Council

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SHILLONG, June 17: A fiscal standoff has erupted between the NPP-led MDA government and the VPP-led Khasi Hills Autonomous District Council (KHADC) over the alleged withholding of more than Rs 41.5 crore in revenue.
While the council claims the state has ignored repeated reminders for payment, Deputy Chief Minister Prestone Tynsong dismissed the allegations, remarkably asserting that all dues have been cleared “in advance” up to March 2026.
The dispute took centre stage during the opening day of the KHADC Summer Session. Chief Executive Member (CEM) Winston Tony Lyngdoh informed the House that the council’s financial position is under severe strain because the state government has failed to release its legitimate share of revenue since last year. “Till now, and since last year, we are yet to receive the share due to the KHADC. The government has not released the council’s share from transport and minor minerals,” Lyngdoh said.
According to the CEM, the pending amount includes Rs 29 crore from transport and minor mineral royalties, alongside Rs 12.5 crore earmarked as the second instalment of the 15th Finance Commission grant. Lyngdoh warned that these delays have hampered the council’s ability to fund developmental activities and meet basic administrative obligations, including salaries.
However, Deputy CM Prestone Tynsong, who oversees District Council Affairs, refuted the claims of a fund squeeze.He argued that the state government has been proactive, often releasing funds before the revenue-sharing process is finalised.
“There are occasions when we release funds to the district councils in instalments and even in advance,” Tynsong said. “As far as the KHADC is concerned, I can tell you that we have released all dues up to March 2026. Therefore, I see no reason to suggest the government is delaying payments.”
The KHADC executive committee remains skeptical of this “advance” claim, maintaining that the actual cash flow required to run the council remains blocked at the state level.

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