In a bid to chalk out a strategy over ongoing tussle between the SDMC and contractors over the toll tax collection amount, the Supreme Court has appointed senior lawyer Harish Salve as the mediator in the issue.

The Supreme Court last week ordered a 100 per cent increase of the Environment Compensation Charge (ECC) on light and heavy trucks using Delhi roads.

While the light duty vehicles will now have to pay Rs 1,400, heavy duty vehicles will be charged Rs 2,600. The South Corporation said the increased prices will invariably bring down the number of commercial vehicles entering the Capital which will in turn hamper the toll tax collection.

The tussle between the contractor and the SDMC began as he paid 30 per cent reduced amount to the SDMC. Till now the SDMC used to get Rs 11 crore per week from toll tax collection, this time, after the imposition of green tax, the contractor submitted Rs 7.30 crore.

Meanwhile, the corporation also took a firm stance against SMYR consortium last week, the agency, which is authorised to collect the taxes on SDMC’s behalf, the monthly amount it was supposed to pay officially. They encashed the bank guarantee for two months as the contractor deducted the share from toll tax collection after the green tax was imposed. “Till now Rs 10.5 crore have been encashed. The first time we encashed Rs 7.5 crore and Rs 3 crore in the second turn,” said Radhe Shyam Sharma, Chairman of SDMC Standing Committee. 

As per the contract, contractor has to pay Rs 551 crore to the corporation from toll tax collection without any terms and conditions. While the South Corporation has refused to comply with the reduced amount, the contractor has also expressed its inability to pay the desired sum. This has not gone down well with the South MCD that said it will be forced to dock the expenses from contractor’s security account.