Commercial units defaulting on mandatory contribution

The Budget Coordination Committee has informed that it no longer has enough resources to cover the present level of expenses and still maintain a buffer in case of emergencies. A shortfall of Rs.1.2 crores of income for the current 2016-17 budget is faced, as a result of which the City Services will be in deficit from October 2016 to March 2017. The reason for the shortfall is the unpaid contribution from a number of commercial units who have not fulfilled in the period 2010 to 2015 their commitment to contribute at least 33% of their profits to the community. Emails sent to and personal communication with the executives of the defaulting units have given little or no results. The BCC considers this as a misuse of Auroville’s fiscal governmental support and has asked the major working groups to take appropriate action. In view of the present financial situation, the BCC has frozen the allocation of community maintenances. This means that no new maintenances will be allocated for the time being and that Auroville services which have unused maintenances in their approved budget will not be allowed to start using them.