Service charge row resolved by ministry

Tribune News Service

New Delhi, August 17

A long pending dispute between the South Delhi Municipal Corporation (SDMC) and the Indian Air Force (IAF) over payment of service charge for municipal services has been resolved by the Ministry of Housing and Urban Affairs (HUA) today, sources said.

HUA Secretary Durga Shanker Mishra discussed the issue with both the sides and settled the matter.

The sources said for various municipal services being provided by it, the SDMC has claimed 75 per cent of property tax as service charge in respect of five air force stations at Tuglakabad, Rajokri, Arjan Nagar, Dhasna and Bani Camp, respectively. With IAF disputing this claim, service charge has remained unpaid since 2004. IAF’s contention being that it is liable to pay only 33 per cent service charge.

Mishra heard out the arguments of both the sides in the context of the judgment of the Supreme Court in the matter of payment of Service Charge and the earlier orders of the ministry. The Apex Court earlier ruled that Service Charge shall be 75 per cent if any entity avails all the services of a municipal body, 50 per cent in case of partial utilisation of services and 33 per cent if no services are availed, the sources said.

After hearing both the sides, Mishra opined out that the IAF should pay Service Charge at the rate of 50 per cent, to which both the sides agreed. The IAF agreed to pay the revised charges, about Rs.48 crore, at the earliest.