MCD stalemate: 147 civic projects await panel’s nod

Among the 147 policy decisions pending the standing committee’s approval are also those that have a direct bearing on the civic body’s revenue

The Municipal Corporation of Delhi (MCD) is in policy paralysis as one of its most vital organs, the Standing Committee, is in a political and legal stalemate leading to least 147 policy decisions -- ranging from sanitation to urban development -- stuck in limbo, according to several people aware of the matter.

The MCD is yet to constitute the Standing Committee, which controls the civic body’s purse strings and approves policies before they are approved by the House of councillors. (HT Photo)

While the Aam Aadmi Party (AAP) won the MCD elections in December 2022, but since then, the corporation has been working without a Standing Committee, and senior MCD officials fear that with no early resolution in sight, basic functions of the civic body that directly effect citizens may soon be impacted.

Among the 147 policy decisions pending the standing committee’s approval are also those that have a direct bearing on the civic body’s revenue.

In the last one month, Delhi chief minister Arvind Kejriwal pointed out on three occasions that the progress on flattening the landfills in Delhi has been slower than expected due to delay in decision-making and the non-constitution of Standing Committee.

Some of the other important projects include renewal of the contracts to manage garbage in the central zone of the MCD which covers several VIP pockets in New Delhi; renewal of the contract to manage streetlights; the hiring of a private operator for Delhi’s first pet park in Jangpura; rolling out a plan to depute security guards at 1,535 primary schools; and setting up the impending Shahjahnabad museum and interpretation centre near Lahori Gate.

The MCD administers some of the most basic facilities – such as registration of births and deaths, running primary schools and dispensaries, and clearing building plans – to citizens living in over 94% of Delhi.

Root of the problem At the centre of the current controversy is the Standing Committee, an 18-member panel that controls the purse strings in the civic body and sets the agenda for the House of elected councillors.

The conflict between the ruling AAP and the opposition Bharatiya Janata Party (BJP) has led to a situation that though the first six members of the committee – chosen by the MCD House – have been elected, the 12 ward committees, one each for the 12 civic zones, are yet to be constituted. Each ward committee sends one member to the Standing Committee.

The point of contention here is the 10 aldermen (representatives nominated to the corporation) who have voting rights in the wards committee and indirectly impact the members elected to standing committee from 12 zones.

The AAP has challenged in the Supreme Court the nomination of aldermen by the lieutenant-governor (LG) before the Supreme Court on the grounds that the move is illegal since the decision vests with the elected government and not the Centre’s representative.

With both sides digging their heels, the top court reserved its judgment on the matter in May 17. Until a decision in the matter, the ward committees are not being formed, and in turn, the Standing Committee’s constitution remains incomplete.

Anil Gupta, former chief law officer of the erstwhile North MCD, explained the problem.

“There are four or five kinds of proposals that need the Standing Committee’s approval. These include layout plans for major development projects. The municipal commissioner has the power to clear proposals of up to ₹5 crore but anything above that needs the Standing Committee’s approval,” he said.

A senior official from the municipal secretariat said that unless a legal remedy is found, the crisis is likely to deepen in the coming days with the annual budget preparations beginning in December.

In 2022, the budget was cleared by Special Officer (SO) Ashwini Kumar, who held the powers of Standing Committee. The SO was an ad-hoc appointment to oversee the functions of the MCD till elections were held. The arrangement was put in place as the civic polls were delayed after the Centre announced the unification of the three MCDs – south, north and east corporations – in May 2022. The elections were held in December 2022.

The last set of policy proposals were cleared by the SO in the December-January period.

“In the last few months, the number of policy matters that need approval has gone up to 147 from 70. The pile is only getting taller,” said an MCD official, requesting anonymity.

Durgesh Pathak, AAP MCD in-charge, MLA from Rajinder Nagar assembly constituency, and a nominated member of the corporation, blamed the BJP for the delay in formation of panel of the Standing Committee.

“They lost the MCD elections and are now delaying the work by misusing their power. Unless the Standing Committee is formed, we cannot take certain policy decisions. This panel cannot be bypassed, and the matter is in the Supreme Court,” said Pathak.

He said that the AAP-led administration is trying to complete all the background work related to financial approval, so that as soon as the standing committee is formed, “pendency can be cleared in 7-10 days.”

Projects stuck The contract of the agency that manages waste in the central zone of the MCD expires in November, said a second senior official who asked not to be named. If not renewed on time, chaos will ensue as the concessionaire will stop clearing waste from Daryaganj, Siddharth Nagar, Lajpat Nagar, Andrewsganj, Amar Colony, parts of Sangam Vihar, Kalkaji, Tughalaqabad and Sarita Vihar.

“Neither the mayor nor the commissioner has the sole authority to approve the renewal of the contract or get a new agency since it involves an expenditure of ₹1,200 crore. It has to go through the Standing Committee,” the official said. MCD officials say that they are negotiating with the existing company not to stop work in November.

Also at stake is the operation of 340,000 streetlights installed in Greater Kailash, Kalkji, Defence Colony, and Vasant Kunj, among other areas. The contract with Energy Efficiency Services Limited (EESL), which manages streetlights in four MCD zones, is set to expire in December, said a third official.

MCD’s plan to revive the project to develop the Shahjahnabad museum and interpretation centre at a heritage haveli in old Delhi’s Lahori Gate also awaits clearance by the Standing Committee.

“Tenders for the project have been issued. It was decided that a private firm will manage and run the centre. Since the project involves handing over a corporation property to a private player, the work needs Standing Committee’s approval,” the third official explained.

Likewise, the MCD has completed the tender process in some projects, but the final work order cannot be awarded unless a competent authority comes into existence. “One legal issue with the bidding processes is that the bids submitted by the private contractors are only valid for a fixed period of 3-5 months. The contractors have the legal right to withdraw their quoted rates after some time,” a fourth official said.

A fifth MCD official said that the corporation has not cleared a single layout plan in the past nine months, including the new residential township to be developed by DTC west Delhi’s Hari Nagar, a new Delhi University complex, and several commercial projects.

No end in sight Civic officials aware of the intricacies of the crisis said that the amendment of the GNCTD Act has added a new dimension to the stalemate. A fifth MCD official, on condition of anonymity, said, “Even if the Supreme Court rules in favour of the AAP in the aldermen case, it will stay open to be challenged again since the amended GNCTD Act empowers the President to appoint members of commissions and statutory bodies.”

While BJP’s Yogesh Verma blamed the AAP administration for deliberately delaying constitution of the Standing committee due to “fear of losing polls,” AAP’s Mukesh Goyal alleged that “BJP is demanding formation by flouting rules.”

On the floor of the house, Goyal, leader of house and senior AAP councillor, has said, “In 2012, the then-Congress government appointed aldermen, and the AAP government chose the aldermen in 2017. But this time, the LG nominated these members illegally, and the BJP is to be blamed.”

Meanwhile, former law officer Gupta said that since there is no stay on the formation of the panel, both sides should come together in public interest. “It has been turned into an ego battle. Both sides should find an amicable solution together.”