LG writes to Delhi CM, asks govt to release ₹328 cr to North MCD

Lieutenant governor (LG) Anil Baijal has written to Delhi chief minister Arvind Kejriwal, requesting the state government to release ₹328 crore to the North Delhi Municipal Corporation so that the civic body can pay the salaries of its staff

Lieutenant Governor (LG) Anil Baijal has written to Delhi chief minister Arvind Kejriwal, requesting the state government to release ₹328 crore to the North Delhi Municipal Corporation so that the civic body can pay the salaries of its staff and reduce interruptions of essential public services on account of repeated strikes by the staff.

Nearly 10,000 staff of the North MCD went on a 24-hour strike on Monday to protest non-payment of salaries for several months, but withdrew it hours later after the corporation officials assured the staff to clear their dues (Arvind Yadav/HT Photo)

HT has seen a copy of the letter. When contacted, a Delhi government spokesperson said that instead of recovering thousands of crores of rupees that the Centre owes to the municipal corporations, the civic body was “extorting” money from the state government.

According to the letter, dated December 2, the LG said his office received a representation from North MCD commissioner Sanjay Goel explaining the critical financial condition of the corporation, and its inability to pay salaries of a majority of employees, “resulting in unrest and disaffection among the employees and thus affecting the delivery of essential services”.

The cash-strapped civic body has faced protests and strikes by the doctors, nurses and paramedical staff, and it has adversely impacted the functioning of six major health institutions run by North MCD, the letter said.

The LG’s office could not be reached for a comment.

Nearly 10,000 staff of the North MCD went on a 24-hour strike on Monday to protest non-payment of salaries for several months, but withdrew it hours later after the corporation officials assured the staff to clear their dues. All three municipal corporations are ruled by the Bharatiya Janata Party (BJP), and are going through a crippling financial crisis. They have not been able to pay salaries and implement any new projects.

Reacting to the letter by the LG, a Delhi government spokesperson said that the state government does not owe any funds to the corporations. “It is the Centre that owes the corporations ₹12,000 crores. The Centre gives grants to all municipal corporations across the country, based on a formula of ₹488 per person of the population. However, it is not paying grants to the three MCDs for the last 17 years. Further, thousands of crores of property tax arrears are also pending from various central government agencies. The MCDs can pay salaries to its employees by recovering these dues. However, it is not doing so to extort and defame the Delhi government,” the spokesperson said.

More than 7,000 municipal primary teachers of North MCD are still on the strike, who have refused to acknowledge the agreement reached between the civic body and the umbrella organisation of various staff unions.

North MCD standing committee chairman Jogi Ram Jain on Wednesday said the Delhi government has not released funds despite the LG’s letter. “It is our share of transfer duty and basic tax assignment which is not being released by the AAP to create conditions which led to non-payment of salaries,” he alleged.

Leader of the house Chhail Bihari Goswami said that the pending ₹328 crore include transfer duty for October and November, along with the tax shares for the second and third quarter.

Vikal Goel, AAP councillor and leader of opposition in North MCD House, said the even the Delhi government faced revenue loss due to the pandemic. “On the one hand, the BJP argues that tax share (of the civic bodies) has been reduced in the revised budget, but we should also consider that the Delhi government has also faced loss of revenue due to the pandemic. They are just trying to deflect the blame of their failures on the Delhi government. Where is all the money from the redevelopment projects going?” Goel said.