AAP-BJP standoff could bring civic services in Delhi to halt

NEW DELHI: A standoff -with clear political undertones -between the Delhi government and the three municipal corporations of the capital threatens to trigger a financial crisis that, unless resolved soon, may result in civic services such as garbage disposal being severely hit and lakhs of municipal workers going unpaid.\
Chief minister Arvind Kejriwal has refused to give grants or even loans to the municipal corporations, prompting the three mayors of Delhi to write to the Union finance ministry seeking urgent help.

With AAP running the NCT government and BJP in the driver's seat in all three corporations, the eagerness of the two parties to blame each other for the financial mess is obvious.

The impasse also presents the AAP government with an opportunity to un derline just why it wants full statehood for Delhi.

With the Delhi government itself facing a shortfall in its budget for the first time in recent memory , the standoff is only likely to intensify.

The North and East corporations are particularly badly hit and haven't been able to pay their staff for over two months now. Officials fear workers may go on strike.East Corporation needs Rs 600 crore of grants to clear its debt and stabilize its finances. North Corporation, despite receiving loans still faces a yawning gap in its finances, according to officials. Recently, the sanitation workers association wi th the corporations protested outside the corporations' headquarters as they haven't been paid.

“If our dues aren't cleared by March-end, we will go on a strike. Garbage from streets will not be removed and we will sit on a dharna outside Civic Centre (North and South Corporations' headquarters). East Corporation hasn't paid our staff since December and North Corporation hasn't paid since January .BJP leaders in South Corporation had promised us regularization of sanitation workers, but now they have kept the proposal in cold storage,“ said Rajinder Mewati, president, Safai Karamchari Association.

Regular and contractual teachers had also met Kejriwal at his Janta Darbar as they hadn't been paid for two months now. Pensions for senior citizens, widows, SCSTs & minorities have not been disbursed and uniforms for school kids not bought due to the empty coffers of the two corporations.

The three mayors had met Kejriwal on Saturday asking for their share of taxes assigned from the Centre based on the recommendation of the Delhi Finance Commission.“North Corporation was to get Rs 302 crore, but we were told that it had been adjusted in our loan amount. When we asked for loan, he (the CM) refused and asked us to go to finance ministry ,“ said Yogender Chandolia, north Delhi mayor.

Delhi gives 9% of its share in tax collections as non-plan budget to the corporations as set out by the Delhi Finance Commission. Last year, this amounted to Rs 2,979 crore for payment of salaries and other such expenditure. Sources in the Delhi government's finance department said this money has been released and emphasized that it is rightfully due to the corporations.

Besides this, the state also releases funds for different projects after the demand is cleared by the lieutenant governor as the municipal corporations are led by him in law.The corporations partly fall under the purview of the Centre. While the Delhi government got some powers in the running of the corporations post trifurcation in 2011, even now the three bodies are under a centrally enacted law the Delhi Municipal Corporation Act, 1957.

“Since we have a huge amount of loan and interest charged at 13.5%, the money has been deducted as repayment of loan,“ said P K Gupta, Commissioner, North Corporation. He clarified that this had happened some time in January , before the AAP government took office.

The Kejriwal government since taking charge in Delhi has expressed concern about the financial health of the corporations. In his first review of the corporations, Kejriwal asked the municipal commissioners to come up with a plan to make the corporations viable. Last week, he again held a detailed review. The Delhi government feels that the corporations are not functioning properly and there is no proper planning to enhance income through greater enforcement of property tax collection.

Last week, North Corporation had formally moved a pro posal to unify the three corporations. “Unification is the so ution to this mess, as assets weren't distributed propor ionately A . All ` ' and `B' category colonies are with South Corporation and North and East Corporations have lower category colonies. There is income generation from property ax,“ said east Delhi Mayor, Meenakshi. The major source of income is through property ax collection and parking charges. “South Corporation sn't sharing the toll tax amount collected,“ said a senior East Corporation official.

When trifurcation took place, the issue of the financial burden increasing was raised but it was decided that it would be resolved through internal revenue generation and borrowings. East Corporation had even asked for money from South Corporation but to no avail. “We do have a surplus, but t won't last long. We are able to pay our staff, but no major pro ects are taken up in the financial year 2015-16,“ said Khushi Ram, south Delhi mayor.