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No solution in sight to MCD, DMRC property tax issueeadlock over

Sandeep Joshi

Officials called for meeting on July 10

NEW DELHI: There are no immediate signs of a solution to the tussle between the Municipal Corporation of Delhi and the Delhi Metro Rail Corporation over the issue of payment of property tax, property development and advertisement rights, though Delhi Chief Secretary R. Narayanaswami has called a meeting of senior MCD and DMRC officials on July 10 to end the impasse.

Facing financial crunch, the civic body wants the Delhi Metro not only to pay property tax worth around Rs.400 crores immediately but also share revenue earned from property development on the land allotted to it by MCD and from outdoor advertisements. But DMRC does not want to share its earnings with the civic body stating that it has been set up by a special Act of Parliament and all its actions were as per the Act.

Last month the Delhi Metro stopped its land development activity at its Inderlok station after the civic body threatened to seal the premises claiming that the former did not had requisite permission for property development.

However, DMRC's subsequent reply to the civic body's legal notice that the Delhi Metro Act supersedes the Delhi Municipal Corporation Act has irked the Councillors who now want immediate action against DMRC.

Moreover, MCD is also not very hopeful of the July 10 meeting as the Councillors and senior officials say earlier meetings with DMRC officials on the same issues have failed to yield any result, as Delhi Metro was adamant on not sharing revenue with MCD.

"We will wait for the meeting, but if nothing concrete is achieved, a direct action would be initiated against DMRC that would include removal of hoardings and sealing of sites where illegal property development work is going on," said a senior Councillor.

Another reason why the Councillors are not very positive about the meeting is the strained relationship between the political leadership in the Congress-ruled Delhi Government and MCD over the past few years.

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