DDA fails to pay tax dues of Rs 746 cr, accounts attached

Jan 13 2013, 01:26 IST
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SummarySouth corporation says the land agency had defaulted on taxes on 319 properties.

South corporation says the land agency had defaulted on taxes on 319 properties.

The South Municipal Corporation has attached four accounts of Delhi Development Authority (DDA) for not paying property tax.

Corporation officials said though they have made repeated demands to the DDA in the past, the land agency failed to pay up.

The South Municipal Corporation has raised a demand of Rs 746 crore from DDA as property tax. This amount was reached after calculating tax plus interest on properties owned by the land agency, falling under the corporation’s jurisdiction.

The corporation said the DDA is yet to pay property tax on 319 properties in the three corporations, apart from 24 sports complexes.

According to the provisions of the Delhi Municipal Corporation Act, DDA is required to pay tax for its properties. The councillors, during budget meetings, have been asking corporation officials to take action against major property tax defaulters, especially government agencies, so as to achieve revenue targets.

“We have been thinking of raising the taxes, as our accountants told us that it was needed to enhance the corporation’s revenue. We objected to this suggestion and asked them to collect tax dues, which is a huge sum, from government organisations as well as private parties. This issue with DDA, regarding tax dues, has been going on for a long time now as the agency has been delaying payment,” Rajesh Gehlot, Standing Committee chairman of South Corporation, said.

“We have attached many bank accounts of DDA, including one of their main accounts. They may not be able to pay salaries of their employees unless they clear our dues,” Gehlot said.

A senior DDA accounts officer confirmed that the accounts have been attached and the authority will start the process of reconciliation as soon as possible.

“We will get in touch with the corporation authorities. We will also take legal advice on attachment of our accounts. There are certain unresolved issues, which need to be taken up with the corporation. We have been paying tax since 2004 based on self-assessment,” the official said.

Regarding the 24 sports complexes, some legal issues were raised by DDA, and, on the direction of L-G, a joint reference was made to the Additional Solicitor General (ASG).

“Based on ASG’s opinion, it was made clear that DDA will pay property tax on these sports complexes too,” said the letter issued to DDA.

The corporation has given the land agency one month’s time to clear dues. In its reply to the corporation’s notice in October, DDA said legal opinion rendered by ASG was under consideration.

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