Electricity tax: North MCD to slap notice to TPDDL

The North MCD is planning to issue notice to Tata Power Delhi Distribution Limited (TPDDL) for outstanding electricity tax along with penalty. The electricity tax due to TPDDL is about more than Rs. 80 crores.

According to section 155 of DMC Act, a penalty of 20 per cent can be imposed for default and the corporation can also slap a notice under section 455 for demand of arrears of tax due.

Yogendra Chandolia, mayor of North MCD said that the power distribution company needs to deposit the tax within 40 days. ‘The corporation has not received electricity tax due to them since January 2014’, he added.

The demand for power consumption against street lights is almost 25 per cent of the electricity tax which needs to be deposited with the corporation as per statutory requirement within 40 days. The power company is looking to adjust the electricity tax with the power bills of the civic body. ‘However, as per statutory provisions, no tax can be adjusted against any other demand and the power distribution company is liable to pay the tax due towards it’, said Chandolia. 

The mayor warned that if such activities continue to persist or if the power distribution company gives out threats then the criminal case be would be lodged against it for causing inconvenience. ‘Any sort of arm twisting will not be tolerated in any case’, the mayor said.