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HC wants municipal corporation for Gandhinagar

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The Times of India 18.09.2009

HC wants municipal corporation for Gandhinagar

AHMEDABAD: Forty-five years after its foundation, the state capital will have a transition from bureaucracy to democracy as far as its management is concerned. The Gujarat High Court on Thursday directed the reluctant state government to form a municipal corporation for Gandhinagar so that the city could have its own elected body to manage civic affairs.

Despite proposals as well as studies conducted after visiting cities like Chandigarh, in a bid to form a local elected body for Gandhinagar, the state government has not declared it a municipal corporation. In 2007, a local organisation Gandhinagar Jagruk Nagrik Parishad (GJNP) filed a PIL in the high court, demanding municipal corporation status for the capital. GJNP lawyer, Jayant Bhatt argued that assigning corporation status to the city is a constitutional obligation for the state government ever since an amendment in Article 243Q of the Constitution in 1993. The city has a population of over 2 lakh spread over an area of 56.73 sq km.

The state government continued to argue that it is a legislative issue and the citizens are happy with the Gandhinagar Notified Area Committee, thus need for an elected body was never felt. Advocate general Kamal Trivedi also stated, "On formation of a municipal corporation at Gandhinagar, unnecessarily people would be subjected to local taxes, which may be a burden to them since most of the inhabitants in and around Gandhinagar are government employees."

This invited court's wrath on the government. Asking it to complete formalities of forming a municipal corporation at the state capital, the division bench of Chief Justice KS Radhakrishanan and Justice Akil Kureshi observed, "By not forming the municipal corporation, the constitutional requirement has been given a complete go-by. State government cannot shirk its responsibility in enforcing the constitutional obligations and duties cast upon it."

Dubbing the government's contentions as "flimsy and irrational", the judges noted, "If statutory requirements and constitutional requirements are not complied with, it is the bounden duty of a constitutional court to direct the government to implement those constitutional requirements. Failure to do so by constitutional court will be failure to uphold the constitution and the laws."

Moreover, the court criticized the state government on this issue in harsh words, "Disobedience to the constitutional mandate is the disobedience to the constitution itself...constitutional court has a duty to alert the state government of its disobedience. We have noticed that initial enthusiasm to uphold the constitutional mandate subsided later due to certain unknown reasons and time is running out for the state, and if violation persists, it may lead to constitutional breakdown with disastrous consequences."
 

MCD takeover: Sheila meets PC

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The Times of India 18.09.2009

MCD takeover: Sheila meets PC

NEW DELHI: Chief minister Sheila Dikshit on Thursday met home minister P Chidambaram on the MCD issue. She was accompanied by UD secretary D M Spolia.

Dikshit is believed to have thanked Chidambaram for the proposal to delegate some of the MCD-related powers of the central government to the city government but she also outlined the fact that now with three power centres who can take decisions of MCD city government, central government and LG the administrative confusion of multiplicity of authorities will linger on. She said the city government would want to have complete say over MCD to ensure better civic amenities in the city and also expressed her willingness to forego her demands for control over DDA and Delhi Police.

Finance minister A K Walia meanwhile sought to burn holes in MCD's claims of financial self-sufficiency by releasing a complete list of various monies sanctioned to the civic body by the city government and also a list of its own incomes.

"In all we have given them an amount of Rs 3,509.20 crore of which Rs 1169.20 crore was released under plan head. Their total budget estimate for 2009-10 was Rs 6115.93 crore. Under the non-plan head, Rs 800 crore was given for gran-in-aid in education, Rs 700 crore as share of assigned taxes, Rs 750 crore against duty on transfer of properties and Rs 90 crore from one-time parking charges collection by the city government at the time of registration of vehicles,'' Walia said.

He added that MCD's own funds came from the Rs 850 crore collected as property tax, Rs 300 crore from tax on advertisement, Rs 240 crore from tax on electricity, Rs 1102 crore from miscellaneous income, Rs 128 crore against reimbursement of cost of administrative charges from different schemes and Rs 187 crore from toll tax.

BJP constituted a seven member committee to study the home ministry proposal. The members are Alok Kumar, leader of House Subhash Arya, former mayor Arti Mehra, former standing committee chairman Vijender Gupta, Jagdish Mamgain, R P Singh and Aman Sinha.
 

BMC bid to fund infrastructure from its own cash

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The Times of India 18.09.2009

BMC bid to fund infrastructure from its own cash

MUMBAI: The cash-rich BMC is planning to dip into its deep pockets to raise money for the city's various infrastructure projects. The corporation has sought the state government's permission to do so. It has Rs 8,000 crore in liquid cash parked in 31 different funds such as sinking fund, depreciation fund, assets improvement fund, and so on, which it now wants to put to good use.
It has planned to spend Rs 8,986 crore this year on upgrading the city's infrastructure, including roads, sewage, storm water drains, hospitals, and schools. But the BMC Act does not allow it to drawfrom these funds without state government approval.

A few years ago, when the BMC had sought such permission, the state government had turned it down for fear that the money would be taken from the provident and pension funds.

"The Rs 8,000 crore is in funds that do not include the provident and pension funds. These funds are meant for asset creation and upgradation,'' said BMC chief accountant Ram Dhas.

Two years ago the state government for the first time allowed the BMC to draw around Rs 600 crore for upgrading the water supply system. The corporation is hopeful that it will be done this time as well.

"When we draw from the internal funds, we will be paying an interest of only 10%, but if we were to approach the open market it would cost us 13% in interest,'' said officials.

Last year, when the state government had asked a private agency to rate municipal bodies across the country, the BMC had received an A+ rating because of its strong finances, but it was also rapped as its municipal services were not up to the mark.
 


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