North Corpn wants to keep revenue from Civic Centre

Will pocket Rs 600 crore, wont share with other agencies

North Delhi Muncipal Corporation has passed a resolution making clear that it would not share the income of Rs 600 generated from the leased out portion of the Civic Centre with the other two civic bodies, South and East MCDs.

The resolution recently passed by the standing committee of North Corporation says it would have the sole right on all income and liabilities pertaining to the Civic Centre, as it is the North civic body's property after MCD's trifurcation.  

A portion of the Civic Centre — the headquarters of the erstwhile MCD — has been leased out to the income tax department for Rs 1,800 crore. While the department had paid Rs 1,200 crore to the unified MCD, the Rs 600 crore due has to be paid to the North Corporation.  

Of this amount, the South and East corporations have been claiming their shares of 38 per cent and 24 per cent respectively.

However, the standing committee passed the resolution citing the provisions of Section 203(3) of the Delhi Municipal Corporation Amendment Act, 2011.

“Since the Civic Centre is a property of the North Delhi Municipal Corporation, all income and liabilities pertaining to it belongs to the civic body. No administrative order or existing rules of the Act superseding or opposing the amendment will be valid,” the resolution said.

The amount of Rs 600 crore will now be transferred into the account of the North civic body.

As per the resolution, while it would accrue the entire due of Rs 600 crore, the North Corporation will also repay the loan for the civic centre, which amounts to Rs 100 crore per year.

According to a senior leader of the North Corporation, now the two civic bodies will have no claim in the income generated from the civic centre.

“As per provisions of the Act, any property located in the jurisdiction of a municipal corporation becomes the asset of that civic body. The same applies to the Civic Centre,” said V P Pandey, deputy chairman of the standing committee.

Half the portion of B-Block of the Civic Centre has been leased out to the I-T department for 99 years for Rs 1,800 crore.

While Rs 1,200 crore has been paid to the unified MCD, the department, as per the agreement, will pay the remaining Rs 600 crore only after the building gets the completion certificate.

The building still awaits the completion certificate as it is yet to get a ‘no objection’ certificate from the fire department. Pandey said the NOC has not been obtained as work on auditoriums in C-Block of the civic centre is going on.