IAF agrees to pay 13-year-old dues worth Rs 48 crore to SDMC

NEW DELHI: The 13-year-old dispute over non-payment of service charge for municipal services by Indian Air Force has finally been resolved with the latter agreeing to pay Rs 48 crore.

The ministry of housing and urban affairs intervened to sort out differences between South Delhi Municipal Corporation and Indian Air Force over rate of service charge to be levied. For various municipal services being provided by it, South Delhi Municipal Corporation had claimed 75% 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. With IAF disputing this claim, service charge claims had remained unpaid since 2004. IAF's had contended that it is liable to pay only 33% as service charge.

Supreme Court had earlier ruled that service charge would be 75% if any entity avails all the services of a municipal body, 50% in case of partial utilization of services and 33% if no services are availed. Housing and urban affairs secretary DS Mishra examined the issues and decided IAF should pay service charge at the rate of 50%. This decision has been agreed to by SDMC and IAF.


According to SDMC officials, about Rs 48 crore is due to the corporation from the IAF on account of service charge. IAF has agreed to pay the revised charges at the earliest.