The Delhi government told the Delhi High Court that they have released Rs 632.05 crore and Rs 472.22 crore to the East and North corporations respectively in January, to enable them to clear dues of sanitation workers.
The Delhi government told a bench of Chief Justice Rajendra Menon and Justice V K Rao that it has implemented the Fifth Delhi Finance Commission (DFC) recommendations. It also hinted at the recovery of over Rs 1,600 crore from the civic bodies on the ground that it has released more funds in the past years — ranging from 14 to 17% of the net tax collection — which they were not entitled to pay under the Finance Commission.
The Delhi government’s affidavit, filed through Additional Standing Counsel (civil) Satyakam, stated that under the 5th DFC’s recommendations, the civic bodies would be given 12.5% of the net tax collection.
Apart from three MCDs, the New Delhi Municipal Council and Delhi Cantonment Board will also be benefited. “Since funds to local bodies/ municipalities have been released based on a different formula till date, the figures need to be worked out to arrive at actual figures of payable/recoverable amount in terms of the recent decision on the report of 5th DFC,” the affidavit said, adding that the same needs to be “reconciled after obtaining the views of finance and planning departments and local bodies/ municipalities concerned”.
The government’s affidavit came in the backdrop of the court’s December 20, 2018, order to pay the three MCDs in accordance with the recommendations of the 4th DFC.
Satyakam told the court that both the 4th and 5th DFC have been considered while releasing payments.
