SC to DIAL: Pay MCD Rs 15 cr | delhi | Hindustan Times
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SC to DIAL: Pay MCD Rs 15 cr

delhi Updated: May 16, 2011 01:50 IST
HT Correspondent

The Supreme Court has ordered Delhi International Airport Limited (DIAL) to pay Rs 15 crore to the Municipal Corporation of Delhi (MCD), against the Rs 70 crore property tax demand raised by the civic agency.

A bench of justice DK Jain and justice HL Dattu, however, clarified that the order was an interim measure.

The order came on DIAL’s petition challenging the Delhi high court order asking the airport operator to pay the amount to MCD until the high court decided its petition contesting the demand for the entire amount.

The apex court said it was not appropriate to pass any order at this stage, as the high court is hearing the matter.

“Being in the nature of an interim arrangement, we are not inclined to interfere with the impugned order passed by the high court. Accordingly, the special leave petition is dismissed,” the bench ruled.

The court, however, extended the time to pay the amount by two more weeks. The MCD had demanded Rs 70 crore as property tax for Indira Gandhi International Airport, maintained and operated by DIAL.

The operator challenged the amount saying the liabilities prior to May 2006 — about Rs 10 crore — was on the Airport Authority of India that earlier operated the airport.

DIAL said it has already paid Rs 1.32 crore as property tax under the self-assessment scheme. Passing an interim order, the high court had asked DIAL to pay Rs 15 crore within three weeks and listed the matter for next hearing on July 12.