'BSES owes Rs 60 cr to East Corpn'

Civic agency tells power firm to pay within 10 days

The East Delhi Municipal Corporation said on Thursday that a power distribution company, BSES, has not given the civic agency its share of the electricity tax.

The BSES owes a total of Rs 60 crore to the fund-starved civic agency since 2012. The East Delhi Municipal Corporation has asked the BSES to pay the amount within 10 days.

According to a senior official with the East Delhi Municipal Corporation, the BSES collects electricity tax from consumers on behalf of the civic agency.

“The power distribution company has not given the corporation five per cent electricity tax collected on behalf of the civic agency,” said the official.

The issue was raised in the East Corporation’s Standing Committee on Thursday. Chairman of the standing committee Lata Gupta said strict action will be taken against the power distribution company if it fails to clear its dues.

To bring the issue to notice, the East Corporation wrote to Chief Executive Officer, BSES Yamuna Power Limited.

“The BSES Yamuna Power Limited (BYPL) is responsible for supply and sale of electricity under the jurisdiction of East Corporation. Clause 7 of the Assessment and Collection of Tax on Consumption, Sale or Supply of Electricity Bye-laws 1962 requires that the distribution company should collect the electricity tax from the consumers along with its own charges and pay the tax within 40 days to the municipal corporation,” said the letter.

A senior official with the revenue department said that the East Corporation found during the review of the electricity returns that the discom owes Rs 60 crore to the civic agency.

“The BSES is requested to comply with the statuary requirement and deposit the tax collected by the consumers to EDMC within in 10 days of the receipt of this letter. Failure to do so will force EDMC to take action as per provisions of law to recover the money,” the letter said.

A BYPL spokesperson added, “There are dues on both sides. We are reconciling the figures for an amicable resolution at the earliest.”