Currency ban turns boon, Delhi civic workers finally get salaries | delhi | Hindustan Times
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Currency ban turns boon, Delhi civic workers finally get salaries

Employees of the financially crippled municipal bodies in Delhi will finally get their salary for October, thanks to demonetisation

delhi Updated: Nov 23, 2016 15:26 IST
Vibha Sharma
Sanitation workers of civic bodies on strike in east Delhi in July this year.  North and East Delhi Municipal Corporations have decided to utilise the  revenue collected as property tax and conversion charges to pay salaries to 10,000 employees.
Sanitation workers of civic bodies on strike in east Delhi in July this year. North and East Delhi Municipal Corporations have decided to utilise the revenue collected as property tax and conversion charges to pay salaries to 10,000 employees.(Sonu Mehta/ HT Photo)

Employees of the financially crippled municipal bodies in Delhi will finally get their salary for October. And, they have demonetisation to thank for it.

The North and East Delhi Municipal Corporations have decided to utilise the quick revenue collected as property tax and conversion charges over the last two weeks to pay salaries to 10,000 employees working in group C&D. They had not been paid in October because of a shortage of funds.

After Prime Minister Narendra Modi announced the demonetisation of Rs 500/1000 currency notes earlier this month, the civic bodies decided to allow residents to clear their dues using banned notes by November 24.

Read: In dearth of cash, Delhi’s local shops run on trust, credit and generosity

As a result, the North Corporation has collected Rs 21.8 crore as property tax and conversion charges this month. It will be utilising the funds for paying salary to grade C staff for October. On an average, all three municipal bodies in Delhi together earn Rs 7.5 crore as property tax or conversion charges in November every year.

“Except for Group D employees, others working in group A to C have not received last month’s salary. We need Rs 240 crore in total to pay the pending salary of staff, which includes Rs 40 crore for pension fund,” said an official from North Corporation. About 40,000 employees (working in group A to C) will be paid from other resources, officials said.

Property tax and conversion charges are to be paid annually by June 30 every year. The tax received by the corporation this month includes arrears as well as advance payments made by residents in a bid to use up the banned notes.

Read: Study says demonetisation may spell doom for the economy: Here’s why

Likewise, the East Delhi Municipal Corporation alone has collected a total of Rs 10.20 crore from property tax and conversion charges. It will be using the money for paying salary to group D employees. “Despite money crisis we ensure to pay them salary every month. Now that we have collected funds, salary for Group D employees will be released immediately. The group includes sanitation workers and beldars,” said Jitender Chaudhary, standing committee chairman.

According to him, corporation has already written to Delhi government for sanctioning a loan of Rs 100 crores for paying the pending salary but failed to receive any feedback. “We are also planning to meet the Lieutenant Governor and share our financial condition,” said Chaudhary.