HC notice on plea for disbursal of cess from PSPCL to Mohali MC

According to Bedi’s lawyer Ranjivan Singh, not even a penny has been disbursed to Mohali MC since April 2021 and earlier, three instalments, one of ₹3 crore and two of ₹5 crore each were released, but with a deduction of 10% as collection charges

​ The Punjab and Haryana high court on Monday sought response on a plea by Moahli deputy mayor Kuljit Singh Bedi seeking directions to Punjab State Power Corporation Limited (PSPCL) to disburse municipal cess collected by the company within municipal limits.

The 2% cess was introduced in November 2017 and as per the notification of department of local bodies, Punjab, it was to be levied for consumption, use and sale of electricity within municipal limits (iStock)

According to Bedi’s lawyer Ranjivan Singh, not even a penny has been disbursed to Mohali MC since April 2021 and earlier, three instalments, one of ₹3 crore and two of ₹5 crore each were released, but with a deduction of 10% as collection charges.

As per Singh, the collection charges should not have been levied.

The 2% cess was introduced in November 2017 and as per the notification of department of local bodies, Punjab, it was to be levied for consumption, use and sale of electricity within municipal limits.

The plea demanded that PSPCL be directed to release an amount on an interim basis as the corporation was facing financial hardships. It also demanded that PSPCL be directed to develop a software to keep live data of units consumed, sale of electricity etc. The plea will be next taken up in July when PSPCL has to respond.