MCD Crisis: Delhi Government releases Rs 551 Cr loan, Appeals LG to release Rs1575 Cr due

Delhi CM Arvind Kejriwal and Deputy CM Manish Sisodia
Delhi CM Arvind Kejriwal and Deputy CM Manish Sisodia

Government has extended a heavy loan of Rs 551 Crore to North and East civic bodies of the national capital. The relief comes hours after Chief Minister Arvind Kejriwal indicated that some solution will be announced soon. However, even while releasing the loan it maintained that government had already cleared all funds meant for the three Municipal Corporations.

In addition to this North MCD has received Rs 142 crore as stamp duty payment. The measure comes after meeting of “the commissioners of these two corporations, in their meeting with the Chief Secretary (CS) of Delhi and the Principal Secretary Finance, on Tuesday night had informed that a total of Rs 693 crore will be required to clear the salary dues of all employees till 31st  January.”

To arrange the loan money Delhi Government had diverted capital funds earmarked for the education department.

While Dy CM Manish Sisodia had directed the CS and Finance Secretary to work out the modalities to settle the salary issue, they didn’t leave the opportunity to take dig on centre. Delhi Government had appealed the Lieutenant Governor Najeeb Jung, who is also the chairman of DDA, to direct it to “clear the Rs 1575 crore property tax it owes to the three Municipal Corporations.”

Not only this, the government claimed that for the first time since 2012, it has not deducted any money, during this financial year, from the Rs 6,000 Cr outstanding loan that the corporations owe to it.
Interestingly, Delhi government has also decided to consider “the demand of the doctors working in the hospitals run by the three corporations that these hospitals should be taken over by the government.”

The break-up of the loan extended:
Delhi government loan to North MCD       : Rs 314 crore
Delhi government loan to East MCD          : Rs 237 crore
Stamp duty payment to North MCD         : Rs 142 crore
TOTAL                                                            : Rs 693 crore