The long pending dispute between the South Delhi Municipal Corporation (SDMC) and the Indian Air Force (IAF) over payment of service charges for the services provided by the Corporation has been resolved by the Ministry of Housing and Urban Affairs.
According to sources in SDMC, Durga Shanker Mishra, the Secretary in Ministry of Housing and Urban Affairs chaired a meeting, attended by Air Marshal PP Bopat, senior officials of the IAF, SDMC and the Ministry. The issue was discussed threadbare and both sides settled the pending payment of service charge accordingly.
Confirming it, South Corporation’s Mayor Kamaljeet Sehrawat said that the SDMC had claimed 75 per cent of property tax as service charge in respect of five Air Force Stations in Delhi area at Tuglakabad, Rajokri, Arjan Nagar, Dhasna and Bani Camp but the IAF disagreed and claimed that it was liable only to pay only 33 per cent service charge as against 75 per cent claimed by the south corporation. The issue has now been resolved and they have agreed to pay 50 per cent partial service charge.
According to SDMC officials, about Rs 48 crore is due towards the corporation from the IAF on account of service charge and it had remained unpaid since 2004.
Mishra heard the arguments of both sides in the context of the judgement of the Supreme Court in the matter of payment of service charge and the earlier orders of the Ministry.
The apex court had earlier ruled that service charge shall be 75 per cent if any entity avails all the services of a municipal body, 50 per cent in case of partial utilisation of services and 33 per cent if no services are availed.
On detailed consideration of various aspects, Mishra opined that the IAF should pay service charge at the rate of 50 per cent, to which both the sides agreed. IAF agreed to pay the revised charges at the earliest, said the official.