Money for nothing? AMC pays ₹2.64 crore rent for 21 electric cars worth ₹2 crore, leaves them to collect dust

With Amdavad Municipal Corporation’s (AMC) annual budget nearing ₹17,000 crore, questions about where the money goes—and who is accountable—are growing louder. The latest example adds an uncomfortable twist: the civic body paid ₹2.64 crore in rent over five years for 21 electric cars whose combined market value was about ₹2 crore, only to leave them lying unused and deteriorating at a municipal workshop.

The episode has revived criticism that unplanned and excessive expenditure is undermining the city’s development outcomes.

₹12.6 lakh rent for cars worth ₹9–10 lakh each

Five years ago, AMC hired 21 Tata Tigor electric cars and allotted them to Assistant Municipal Commissioners.

The monthly rent was fixed at ₹21,000 per vehicle. Over the 60-month contract period, this translated to ₹12.60 lakh per car.

When the vehicles were registered and put into service in 2020, their market price ranged between ₹9 lakh and ₹10 lakh. In effect, AMC paid more to rent each car than it would have cost to buy one outright. Even today, the base price of the model is around ₹12 lakh.

₹2 crore asset, ₹2.64 crore payout

Based on 2020 valuations, the total market value of all 21 cars was estimated at ₹2–2.10 crore. In contrast, AMC paid more than ₹2.64 crore in rent over the five-year period.

It is noteworthy that the cars were rented from Energy Efficiency Services Limited (EESL) under a central electric vehicle promotion scheme, and not procured through a private agency. EESL is a Government of India joint venture created to enable cost-effective public procurement, leading to sharp criticism of the economics of the deal. 

Contract over, cars gather dust

AMC’s rental contract with EESL ended around four months ago. Since then, all 21 vehicles have been parked at AMC’s Central Workshop in Jamalpur, where they are lying unused and collecting dust in what officials described as “scrap-like condition”. 

Sources at the Central Workshop said correspondence is ongoing with the company to complete the process of returning the vehicles. Until then, the cars continue to sit idle—representing sunk public money with no public benefit.

Registered to AMC chief, owned by EESL

Adding to the confusion, RTO records show that the 21 Tata Tigor electric cars are registered in the name of the Municipal Commissioner, based on official designation. AMC sources, however, confirmed that ownership of the vehicles lies with EESL.

The discrepancy has raised awkward questions within the civic administration. If the cars were taken on rent, why were they registered in the municipal commissioner’s name rather than that of the owning company? In the event of legal or financial disputes related to the vehicles, who would be held responsible?

So far, these questions remain unanswered.

Pattern of unchecked decisions?

The revelations come amid scrutiny of other recent procurement decisions. Just two days ago, AMC’s Central Stores department floated a proposal to award a five-year operation and maintenance contract for 15 loader machines, even though their existing term is set to end after two years. The standing committee approved the proposal, which has since sparked internal discussion.

Together, the cases have drawn renewed attention to how major procurement proposals are evaluated and approved within the civic administration.