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Tiff between SDMC, toll collector to widen over entry of trucks

Tiff between SDMC, toll collector to widen over entry of trucks
Tussle between Municipal Corporations of Delhi and SMYR Consortium, the contractor authorised to collect taxes on behalf of all the three MCDs, may widen over green tax collection. Claiming decline in the entry of trucks in the national Capital, the contractor has made reductions of nearly 30 per cent in the payment to the SDMC, a nodal agency for collecting taxes, owing to the decline in the entry of trucks.

As per the agreement, the SDMC used to get Rs 11 crore per week from toll tax collection but after the imposition of green tax, the contractor submitted Rs 7.3 crore only. While the South Corporation has refused to comply with the reduced amount, the contractor has expressed its inability to pay the desired sum. The SDMC, however, has said that they will be forced to manage expenses from the contractor’s security account.

Radhey Shyam Sharma, Chairman Standing Committee, said: “The contractor has to pay us the weekly sum of Rs 11 crore as they have agreed to pay Rs 541 crore in a year. In the earlier contract, there is no such provision which says that the contractor is allowed to cut down on the amount owing to any reason like lesser entry of trucks.”  

He further said: “They are duty bound to pay us the decided amount and hence they cannot reduce it in any manner. Since they have deposited nearly Rs 40 crore as security money, we have decided to manage the deficit by extracting money from that source. Till now, we are waiting for the court’s next hearing, and then we will decide. If the situation goes out of hand, then we will be forced to take action.” 

The concessionaire, however, rued that the entry of commercial vehicles has reduced by 20 per cent since green tax collection began across 127 entry points in the city. The vehicles opted for different routes and traversed through Haryana and Uttar Pradesh thereby avoiding entry and payment of taxes.
Anup Verma

Anup Verma

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