As the Delhi Development Authority failed to budge despite several reminders sent by the municipal corporations to clear its property tax dues, the North and East Delhi Municipal Corporations have attached bank accounts. Both municipalities are to recover total Rs400 crore as property tax jointly against several properties situated in areas falling under their jurisdiction. The dues of North Corporation are over Rs270 crore, while East Corporation's balance is Rs130 crore.
Meanwhile, one of the banks has also denied to release funds to North Delhi Corporation saying the amount would not be transferred till the clearance from the higher authorities.
Central Bank of India in a communiqué to the North Corporation said, "In receipt of your referred letter for attachment of bank accounts, securities and deposit of DDA with us for an amount of Rs272,16,80,000 and pay same to your office. We may inform your good self that the said amount has been marked as hold amount in DDA account with us." The letter dated March 25, 2013 further stated that the matter regarding the release of the said amount has been referred to higher authorities. "We have referred the matter to our higher authorities for seeking guidance / instructions in the matter. We shall revert on hearing from them. Meanwhile, we reiterate that we have held the said amount in view of your letter under reference," it said.
Apart from the Central Bank of India, the corporations have also attacked bank accounts of DDA in State Bank of India (INA market branch) and Punjab National Bank (Ashok Vihar branch).
While justifying the move by the corporations, a senior official of the EDMC said the agencies had to resort to this method to recover dues as it was left with no other option.
"We took up the matter with appropriate authority and tried to resolve the matter several times. The property tax is due since the unified MCD days. A legal opinion from then Solicitor General of India Gopal Subramanium, which was in favour of the Municipal Corporations," he said.
The official further said following the legal opinion from the SG, once again a notice with copy of the view of the SG was sent to DDA requesting them to pay off the dues but to no avail.
"When the DDA did not pay heed to our demand, we decided to act tough as per the provisions of Delhi Municipal Act. The property tax is major source of income for municipalities. The amount received as property tax is spent on various civic amenities and welfare schemes," he said.
Earlier, the South Delhi Municipal Corporation managed to recover its property tax dues of Rs120 crore from the DDA using similar method of attaching its bank accounts.
The South Delhi Municipal Corporation attached four bank accounts in various banks of the DDA when it defaulted on taxes for its 319 properties including 24 sports complexes in SDMC area.
According to sources, the total outstanding amount was nearly Rs750 crore. The outstanding amount was calculated after adding interest over the years.