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Civic centre lease fills MCD coffers

The cash-strapped MCD got Rs 600 crore from the IT department as the first installment of a lease premium.

delhi Updated: Jul 30, 2010 00:04 IST
HT Correspondent
HT Correspondent
Hindustan Times

The cash-strapped MCD got Rs 600 crore from the IT department as the first installment of a lease premium.

The civic agency on Thursday signed a lease deed of Rs 1,800 crore with the Income Tax Department to provide office space in its newly-built Civic Centre building. The civic body has leased out to the I-T Department approximately 5,57,024 sq ft built-up floor area in blocks B, D and E-2, approximately 29,590 sq ft in service block and parking area for 1,110 cars in the city’s tallest building, which will also house the MCD’s new headquarters.

“This amount will provide us some comfort level from the financial angle,” said Yogender Chandolia, Chairman, MCD’s Standing Committee. The second and third instalments will be paid on the possession date and upon issue of completion-cum-occupancy certificate of the Civic Centre. The cash-strapped civic agency is struggling to make payments to employees and project contractors and had been demanding over Rs 4,500 crore as aid and loan from the Delhi government, which has recently granted it Rs 1,500 crore.

“MCD is to receive Rs 1,800 crore in all from the Income Tax Department,” Chandolia said. He also said that the MCD will consider depositing part of the lease money in a fixed deposit to receive regular income.

Municipal Commissioner K. S Mehra and Meenakshi Singh, Chief Commissioner, Income Tax, Delhi Region, signed the lease. Singh said moving to Civic Centre will help overcome the shortage of office space and provide amenities to taxpayers.

The 28-storey MCD Civic Centre comprises five multi-storeyed blocks, with a total built-up floor area of approximately 1,16,000 sq metres excluding a three-level basement parking facility for about 2,500 equivalent car unit, seven entry and exit gates, eight escalators, 43 passenger and service elevators and 100 per cent power back-up.

Some works are still going on in the building and the MCD recently ordered a probe after rains led to waterlogging in its basement.

First Published: Jul 30, 2010 00:02 IST