The Pioneer 17.08.2010
DDA refuses to pay Rs 333 cr property tax
Staff Reporter | New Delhi
The Delhi Development Authority has refused to pay Rs 333 crores property tax payable to the Municipal Corporation of Delhi (MCD). The agency reasoned that being a body under the Central Government, it has immunity.
This fact came to light during a special standing committee meeting on Monday. While replying to the queries made by a member of the standing committee as to why the MCD was not taking stringent action against Government agencies which have been evading property tax, Municipal Commissioner KS Mehra said the civic body has raised the matter at the appropriate level but the DDA declined to clear the dues.
“It was stated that as a Central Government agency, the DDA is not liable to pay property tax. The matter is being resolved by the MCD. If they are not liable to pay, they should pay service tax to the MCD. A legal opinion has been sought from the Solicitor General to decide upon whether the DDA is liable to pay property tax or service charge to the MCD. Soon, the matter would be decided,” said Mehra.
The Municipal councilors have also expressed their displeasure over the dues pending with the public agencies like the Delhi Development Authority, Delhi Metro Rail Corporation, North Delhi Power Ltd and Delhi Jal Board.
The top officials of the MCD said in case of the Delhi Metro, a demand for Rs 12 crore has been readied. Incidentally, as per initial assessment, MCD records claimed that the DMRC owed Rs 252 crore as property tax to the MCD. However, following a recent meeting with the Lieutenant Governor, it was decided that the DMRC will be liable to pay service charge or property tax as applicable for commercial development outside the station premises.
Meanwhile, with an aim to augment its revenue, the fund-starved MCD tabled an action plan to increase house tax collection. For this, the MCD plans to bring around 10 lakh more properties under the ambit.
