In a move that could bail municipal corporations in the national Capital out of financial difficulties, the Arvind Kejriwal Government has withdrawn its advisory restraining the civic bodies from imposing property tax on unauthorised colonies. The civic bodies may start collecting property taxes from 1,700 unauthorised colonies without approval of layout plan and opening of registry.
Earlier in June this year, the Kejriwal Government had issued a notification putting a restraint on the collection of taxes from unauthorised colonies; the civic bodies had protested against the Delhi Government and proposed the collection of property taxes from these colonies. The Delhi Government had directed that the property tax should be levied on unauthorised colonies from the date of approval of the layout plan of these colonies by the corporations. In other words, it meant that the property taxes should be collected from unauthorised colonies once they are duly regularised.
Financial situation of three civic agencies has deteriorated after the trifurcation. Though the South Delhi Municipal Corporation fared much better and has not depended on grants, both North and East Delhi Municipal Corporations have been reeling under financial crisis since 2012.
The East Municipal Corporation has been running into losses worth Rs 500 crore annually. With the corporations facing a severe shortage of funds, their thousands of employees have been left in the lurch as the corporation failed to give their salaries for months since trifurcation.
The AAP Government had denied any financial aid to the cash-strapped civic agencies and asked them to seek the Centre's help.
EDMC sanitation workers have been on strike demanding disbursal of their salaries.