HC orders Delhi govt to pay nearly ₹900 crore to MCDs by end of March
The Delhi high court on Wednesday directed the state government to release the remaining amounts due to the three civic bodies towards their Basic Tax Assignment (BTA) on the basis of revised estimates presented in the budget for the year 2021-22, within the current financial year.
A bench of Justice Vipin Sanghi and Justice Rekha Palli said that the amount, which is nearly ₹900 crore, is one of the major and important sources of revenue for the corporations. It said that this contribution by the Delhi government to the corporations is used to meet the expenditures towards the salaries and other expenses on a day-to-day basis.
“….we direct the Delhi government to release in the financial year the remaining amount due towards BTA to the three corporation on basis of revised estimates presented in budget for year 2021-22,” the court said.
The corporations had sought that the amount deducted by the Delhi government in their revised estimates be released to them for release of salaries.
The Delhi government, represented by additional standing counsel advocate Satyakam, told the court that they have incurred a huge deficit in the revenue generation due to the pandemic and they would release the amount in April.
However, the court said that the money should be released by this financial year. A detailed order is yet to be uploaded on the website of the Delhi high court.
Reacting to the development, Delhi BJP general secretary Harsh Malhotra, at a press conference, said that the decision of high court ordering immediate release of funds to the three municipal corporations has vindicated his party’s agitation, demanding fund release for MCDs.
He said that BJP has all along said that due to its biased political attitude, the Arvind Kejriwal government has not allowed rise in MCDs funds as per 4th Delhi Finance Commission & Municipal Reforms Committees recommendations.
“Apart from this, the Arvind Kejriwal government every year cuts the budget allocated funds of the three MCDs. Due to this biased politics of Arvind Kejriwal government, today over ₹13,000 crore of MCDs funds stand accumulated with it.
“….the court today delivered a historic decision rejecting all pleas put up by Delhi government and ordered that they should in one week release Rs. 991 crores of pending funds of the three MCDs for this current financial year 2020-21,” he said, adding that the order has established that the Delhi government has with political bias stalled municipal funds and it is responsible for the problems of deficient public services faced by the people apart from the salary problem faced by the employees.
The AAP did not respond to requests for a comment on the issue.