North civic body sells, leases out property to pay dues to staff

North body commissioner Sanjay Goel told a bench of Justices Vipin Sanghi and Jasmeet Singh that the civic body has already leased out Novelty Cinema for ₹37 crore and another commercial place at Karampura for ₹7 crore, last month.

The North Delhi Municipal Corporation told the Delhi high court on Tuesday that it has begun selling or leasing out 37 high value properties under its jurisdiction to generate revenue to clear the salaries of its employees.

A MCD worker wearing PPE suit sprays disinfectant while sanitizing a house during lockdown against coronavirus, at North Campus, Delhi University, in New Delhi. (Sanchit Khanna / Hindustan Times)

North body commissioner Sanjay Goel told a bench of Justices Vipin Sanghi and Jasmeet Singh that the civic body has already leased out Novelty Cinema for ₹37 crore and another commercial place at Karampura for ₹7 crore, last month.

“By October or November, the procedure of leasing out or outright sale of nine properties will be completed. We are expecting revenue of ₹700-800 crore from it,” Goel told the court.

The high court had on Monday warned the North MCD that it will start attaching the civic body’s properties, pointing out that the employees and retired staff cannot wait endlessly for salaries and pensions.

The commissioner of the civic body informed the court that currently, there are 57,000 employees in the corporation.

The court noted that besides salaries, the corporation has other mandatory responsibilities which also require funds, and for which it should augment its resources to generate more revenue.

It noted that 96% of the corporation’s revenue goes into paying salaries and thereafter, it needs funds for other works, including stopping the spread of epidemic, control dengue and perform desilting of drains. “Ensure maintenance of the city as this is one of the foremost priorities and for that you need to augment resources,” the bench said.

The court was hearing a plea by Akhil Dilli Prathmik Shikshak Sangh, through advocate Ranjit Sharma, seeking initiation of contempt proceedings against the North MCD for not paying pension of retired staff despite judicial orders.

The bench asked the civic body to make an endeavour to comply with the judicial orders to clear arrears of salaries and pension, saying it is not acceptable that a poor employee is not paid dues.