Chandigarh/New Delhi: In a major administrative shake-up, Chandigarh Union Territory (UT) Administrator Gulab Chand Kataria, acting on directions from the Union Ministry of Home Affairs (MHA), has revoked the financial sanctioning powers of senior officers and shifted them to the MHA, centralizing all financial approvals under the Home Ministry’s direct control.
The move, formalized through an order dated September 30, 2025, has created considerable confusion among departments across the UT administration, disrupting tender approvals and project sanctions.
Previous Financial Powers Revoked Across All Levels
Until the latest directive, financial authority within the UT administration was distributed as follows –
- Heads of Departments (HoDs): up to ₹1.5 crore
- Chief Engineers: up to ₹3 crore
- Administrative Secretaries: up to ₹20 crore
- Chief Secretary: up to ₹50 crore
- Administrator: up to ₹100 crore
All these powers now stand revoked, and every new financial sanction must be cleared by the Ministry of Home Affairs.
Disruptions in Daily Functioning
The sudden withdrawal of powers has already impacted routine operations. On October 1, the Engineering Department deferred allotments for several tenders – some as small as ₹5-10 lakh – amid confusion over whether Delhi’s approval would now be required even for minor works.
An official on condition of anonymity said, “We’re not sure if we need to send every proposal to Delhi. Even basic projects are now in limbo.”
What Continues and What Doesn’t
- Ongoing Projects: Sanctioned works and tenders already issued will continue as per previous approvals.
- New Proposals/Schemes: All must be cleared by the MHA, regardless of amount.
- Emergency Expenditures: The Chief Secretary retains authority for emergency direct purchases up to ₹10 crore.
Technical Sanctions: These remain unchanged –
- Executive Engineers: up to ₹30 lakh
- Superintending Engineers: up to ₹1.8 crore
- Chief Engineers: Full technical sanction powers
Concerns Over Administrative Paralysis
While the Centre’s move is being seen as a step to ensure tighter financial oversight, it has also raised concerns about potential administrative delays and bureaucratic bottlenecks.
Several officers are now seeking urgent clarifications from the Chief Secretary and MHA to avoid stalling critical infrastructure and public service projects.
One senior official remarked, “This level of centralization could hamper responsiveness at the local level. Even emergency works might face red tape.”
Why the Move?
Sources suggest the decision is part of a broader effort by the Centre to align Union Territory governance with national-level financial discipline, especially in light of recent concerns over cost overruns and lack of accountability in several projects.
