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.

The Times of India  13.08.2010

NAGPUR: In a major jolt to corporators, the state government has overruled the NMC house and increased the water tariff. Consumer organisation Jan Akrosh had been apprehensive about this happening ever since NMC sent its proposal to the government for approval.

The NMC house had increased the water tariff threefold in August 2009. However, following a sustained campaign against the hike by Jan Akrosh and other organisations, NMC reduced the water rates in February 2010. It sent the proposal for approval to the state government. However, the then municipal commissionerAseem Gupta had added a dissent note to the NMC proposal, stating that the proposed water tariff was unrealistic.

The latest tariff approved by the government will benefit lower-end domestic consumers as compared to the existing tariff. However, if consumption is high the bill will not be much less if the levy is at existing tariff. The GR mentioning the new rates is expected to reach NMC in 3-4 days. It is certain to lead to a spate of protests by consumer organisations as witnessed earlier.

NMC sources said that the government officials told NMC officials that while subsidising the poor people made sense, people who consumed more water and had the capacity to pay should not be given too much subsidy. Hence, NMC's second water tariff proposal was deemed unrealistic.

One of the mandatory conditions of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was 100% recovery of expenses incurred in water supply from consumers. Most local bodies are nowhere near achieving the target and hence both state and central governments are in no mood to entertain populism, NMC sources added.

The government has abolished monthly service charge of Rs 56 in the new tariff. For the first twenty units the rate will be Rs 5 per unit as proposed by NMC. It will be Rs 8 per unit for 21 to 30 units slab, Rs 11 per unit for 31-80 unit and Rs 15 per unit for 81 units and above.