The Hindu : New Delhi News : `Interest charges on demolition illegal'

Online edition of India's National Newspaper
Thursday, Feb 15, 2007
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New Delhi

New Delhi

`Interest charges on demolition illegal'

Staff Reporter

NEW DELHI: Municipal Corporation of Delhi Standing Committee member Vijender Gupta on Wednesday wrote to the Municipal Commissioner alleging that the 9 per cent interest charges on demolition being levied by the civic body on property owners whose dwellings have been demolished and who have not paid the demolition charges were unconstitutional and unjustified. Referring to a public notice that appeared in newspapers on Tuesday on behalf of the MCD, Mr. Gupta pointed out that Section 343 of the Delhi Municipal Act provided for recovery of the demolition charges from defaulters only as property tax arrears. But there was no provision for charging interest.

Also, prior to sending the public notice, the proposal was never taken up by the MCD Standing Committee for discussion, said Mr. Gupta. He said the recovery of demolition charges was also illogical since in most cases the notices for recovery of demolition charges had not been properly served on the property owners concerned. It was also one major reason for not depositing the demolition charges by property owners, he said.

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