EDMC in HC claiming faulty fund distribution among 3 corpns

The Delhi High Court has sought the Centre's response on a plea by the East Delhi Municipal Corporation (EDMC) alleging "faulty distribution of funds" among the three civic bodies by the AAP government.

A bench of Acting Chief Justice Gita Mittal and Justice C Hari Shankar also issued notice to the Delhi government and the DDA seeking their stands on the application by the East Delhi's municipal body which claimed among the three corporations it gets the least amount of funds.

The EDMC in its plea has also said the claimed unequal distribution of money is a consequence of the Third Delhi Finance Commission (DFC) recommendations which were meant for the unified MCD, prior to its trifurcation.

It has sought the implementation of the recommendations of the Fourth DFC by the Delhi government, saying it was supposed to come in to effect from the financial year 2012-13 and the EDMC would get a larger share of funds meant for the corporations under it.

Presently, under the 3rd DFC, South Delhi Municipal Corporation (SDMC) gets 45 per cent of the funds, the North body gets 36 per cent and the EDMC gets 19 per cent, the application stated and added that under the 4th DFC, the East civic body would get around 42.57 per cent.

The EDMC in its plea has sought retrospective implementation of the 4th DFC.

Apart from that it has also sought implementation of the 5th DFC with effect from the financial year 2017-18.

The corporation has also sought an interim relief in terms of immediate release of Rs 483 crore by the Delhi government as a loan to it in view of the extreme financial hardship it faces in paying monthly salaries to its employees and pensions to those who have retired.

It has also claimed that as of January this year, the total liability on it was to the tune of Rs 1,737 crore.

The court listed the matter for further hearing on April 11.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)