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EDMC to take ‘coercive’ action against BSES

East Delhi Municipal Corporation (EDMC) has decided to take “coercive” action including legal proceedings against BSES for recovery of its “dues” of electricity tax worth Rs 60 crore from the power utility.

The civic body’s standing committee discussed the issue in its meeting on Thursday and decided to take “stern” action against discom BSES for not paying Rs 60 crore which it owes to EDMC as tax for the past three years, standing committee’s chairperson Lata Gupta said.

“BSES owes an amount of Rs 60 crore, 5 per cent of the amount charged by it from customers in EDMC area, as tax but it has not paid the amount despite several efforts. I directed the Commissioner of municipal corporation to take necessary steps including legal action for recovery of the amount,” she said.

The civic body has asked the BSES to pay the amount within 10 days, a senior municipal officer said.
The municipal corporation authorities have written a letter to the CEO of BSES Yamuna Power Ltd, citing Clause 7 of the Assessment and Collection Tax on Consumption, Sale or Supply of 
Electricity Bye-laws 1962, stipulating it to collect the electricity tax from the consumers along with its own charges and pay the tax within 40 days to the municipal corporation.

The letter by EDMC has urged the BSES to comply with the statuary requirements and deposit the tax collected from the consumers to EDMC within 10 days.

The cash-strapped civic body has stepped up efforts to realise Rs 60 crore, which is the original electricity tax amount since 2012.
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