UT Administrator withdraws financial powers, shifts authority to MHA

Acting on the Centre’s directions, UT Administrator Gulab Chand Kataria revoked officers’ financial powers, transferring sanctioning authority to MHA.

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In a move that has left the Union Territory (UT) administration unsettled, Administrator Gulab Chand Kataria, acting on the Centre’s directions, has withdrawn the financial powers of senior officers and transferred them directly to the Union Ministry of Home Affairs (MHA). The order, issued on Tuesday (September 30, 2025), has led to widespread confusion, with several departments now awaiting clarification on how even routine works will proceed.

Until now, financial sanctioning powers were distributed across different levels—Heads of Departments (up to Rs 1.5 crore), Chief Engineers (up to Rs 3 crore), Administrative Secretaries (up to Rs 20 crore), Chief Secretary (up to Rs 50 crore), and the Administrator (up to Rs 100 crore). All these powers now stand revoked, with final approval resting solely with the MHA.

The sudden shift has already disrupted functioning. On Wednesday, the engineering department deferred allotments of several opened tenders, as officers were uncertain whether even minor projects worth just Rs 5–10 lakh would require clearance from Delhi.

The order, however, clarifies that ongoing works—where sanctions and work orders have already been issued—will continue under previous rules. For all new schemes and tenders, MHA approval will be mandatory.

While financial sanctioning has been centralized, technical sanctioning powers remain unchanged. Executive Engineers can still approve up to Rs 30 lakh, Superintending Engineers up to Rs 1.8 crore, and Chief Engineers retain full technical sanction powers. Additionally, the Chief Secretary retains the power to authorize emergency direct purchases up to Rs 10 crore.

The move, intended to align financial oversight with the Centre’s directives, has triggered unease among officers, many of whom are seeking urgent clarifications to avoid further administrative paralysis.