Order CBI probe into MCD ‘toll tax scam’: Manish Sisodia to LG; MCD refutes allegations

Delhi deputy chief minister Manish Sisodia said a private firm had, “in connivance with the MCD” siphoned off crores from over a million commercial vehicles that enter Delhi every day through 124 border entry points in Uttar Pradesh and Haryana.

A day after the Aam Aadmi Party (AAP) alleged mismanagement and corruption in toll tax collection by the Municipal Corporation of Delhi, state deputy chief minister Manish Sisodia on Wednesday wrote to lieutenant governor Vinai Kumar Saxena demanding a Central Bureau of Investigation (CBI) probe into the matter.

Delhi's deputy chief minister Manish Sisodia. (HT Archive)

In his letter, Sisodia asked that “strict action” be taken against officials and politicians who he alleged had led to a loss of ₹6,000 crore to the civic body, even as MCD refuted the claims, terming them “baseless”.

Sisodia said a private firm had, “in connivance with the MCD” siphoned off crores from over a million commercial vehicles that enter Delhi every day through 124 border entry points in Uttar Pradesh and Haryana.

“These include tempos, taxis and trucks. All these commercial vehicles pay toll tax to MCD, ranging from ₹100 to ₹1,200” Sisodia’s letter said.

“MCD awarded a tender to a private company for toll tax collection in 2017 at a contract rate of ₹1,200 crore per annum... The company paid the full amount to MCD in the first year, but in connivance with MCD, it reduced giving the collected tax to the civic agency to just 20-30%. The corporation, which should have cancelled the tender, blacklisted the company and then issued a tender to a new company. But it has done nothing for four years,” he said .

He has also alleged that in 2021, MCD awarded a tender to a sister organisation of the company hired in 2017 for “a very low amount” and also given relaxations of ₹83 crore on account of the pandemic.

AAP MLA Durgesh Pathak made similar allegations on Tuesday.

In Delhi, toll tax collections are managed by private contractors who make payment as per open tenders to the municipal body. Out of Delhi’s 124 border points, RFID toll collection systems have been installed at 13 major entry points, used by nearly 80-85% of commercial vehicle traffic entering the city.

MCD officials refuted the allegations, saying the firm’s contract was terminated in 2021 after it failed to make payments to the civic body.

“In 2017, the contract was awarded to a company for a payment of ₹1,206 crore per annum for a period of five years. After getting the contract, the company said it made losses on account of opening of the Eastern Peripheral and Western Peripheral expressways, as well as the order of the courts to stop toll collection on the free lane. The company instead sought compensation for the loss it alleged. MCD held several meetings to resolve the matter and after the failure of the company to make due payments, it [the MCD] terminated the contract,” the civic body said in a statement.

The corporation said it forfeited the company’s security deposit and also kicked off processes to attach its properties.

“All legal steps have been initiated against the company and the matter is sub-judice in the high court and Supreme Court,” it said.

The spokesperson said another firm was tasked with collecting toll taxes last year, and has made payments specified in the contract, except for the period of the lockdown, when heavy vehicles were restricted from entering Delhi.

“The two are separate companies. There is no relation between the two companies as per the records available with the corporation,” MCD said.

Spokespersons of the Delhi unit of the Bharatiya Janata Party, which ran Delhi’s three civic bodies till the three were unified this year, said Sisodia’s allegations were a “ploy to divert” attention.