Delhi LG writes to Kejriwal to release pending dues to MCD

LG Saxena’s communication to Kejriwal requested him to release ₹383.74 crore due to the MCD which have been “unfairly withheld” over a two year period -- 2020-21 and 2021-22.

Delhi lieutenant governor Vinai Kumar Saxena has written to chief minister Arvind Kejriwal, requesting him to release ₹383.74 crore reportedly due to the Municipal Corporation of Delhi (MCD), adding that these funds have been “unfairly withheld” over a two year period -- 2020-21 and 2021-22.

New Delhi: Delhi Lieutenant Governor VK Saxena at an awareness session on World Hepatitis Day, at Parliament Annexe, in New Delhi, Thursday, July 28, 2022. (PTI Photo/Kamal Kishore) (PTI07_28_2022_000020A) (PTI)

“In the larger interest of citizens of Delhi, I request you to ensure that ₹383.74 crore is made available to the MCD at the earliest,” the communication dated September 6 states.

With his letter, Saxena has for the first time waded into the controversy over alleged shortfall of funds released to the three corporations (the bodies were unified earlier this year), over which the Aam Aadmi Party-led Delhi government and Bharatiya Janata Party-led MCDs have been at loggerheads.

The Delhi government did not respond to calls and messages seeking comment on the matter.

In his letter, Saxena said that the funds are essentially required for the operation and development of infrastructure related to schools, hospitals, dispensaries, roads, footpaths etc which impact the daily life of the citizens of Delhi. “It need not be emphasized that the above budget estimates were voted and approved by the Delhi legislative assembly and was incumbent upon the urban development department to timely release the funds to MCD. It was not done despite several requests and due to non release of funds the provision of various public services by MCD is being adversely impacted causing inconvenience to the citizens of Delhi,” Saxena said.

The LG stated that the shortfall between the budgetary allocation and actual receipt of funds by the MCD lies under the urban development, education and medical heads. Under the urban development head, the actual receipt of funds over these two years was ₹565.1 crore against the budgetary allocation of ₹621.36 crore, leading to a shortfall of ₹56.26 crore.

Similarly, the shortfall under the education head is ₹212.29 crore and under medical head is ₹115.19 crore, the letter argues. “As against the revised budget estimate approved for ₹3768.64 crore under the above plan heads during the financial years 2020-21 and 2021-22 only ₹3384.90 crore was released resulting in shortfall of ₹383.74 crore,” Saxena wrote.

The BJP has previously alleged that ₹13,000 crore has been withheld from Delhi’s corporations by the AAP government as per the recommendation of the 3rd, 4th and 5th Delhi Finance Commission recommendations. In December 2020, all three mayors, standing committee chairpersons and key civic functionaries had carried out a dharna outside the CM’s residence to demand that funds be released. However, the AAP government has always reiterated that no dues were pending towards the municipalities.

The tussle over funds and ensuing financial crisis was also cited as a key reason behind the the unification of the three municipal corporations, with union home minister Amit Shah accusing the Delhi government of “step-motherly treatment” of the three corporations during the parliamentary debate over the unification bill.