High Court pulls up MCD over its ‘precarious' financial health

PTI

New Delhi, March 28

The Delhi High Court on Thursday said the financial condition of the Municipal Corporation of Delhi (MCD) was "precarious" and the administration of the national capital would require a re-look if the civic authority was incapable of handling itself.

The court was hearing a batch of petitions concerning the non-payment of salaries and pensions by the corporation.

The counsel for the MCD said dues have been paid till the month of February, but some more time was required to pay arrears as per the Seventh Pay Commission's recommendations to all eligible employees.

Even as the MCD lawyers stated that arrears have not been paid to around 50,000 employees and a decision has been taken to set aside a minimum of Rs 15 crore per month for this purpose, the counsel appearing for the petitioner employees said the corporation was not giving retirement-related benefits to its employees and one of the MCD schools had broken desks.

The court expressed its displeasure over the outstanding arrears despite the MCD being given opportunities to make the payment and questioned if the corporation was able to undertake any development work.

“Your financial condition is so precarious; what development work are you doing? Are you existing only for paying salaries? You are not able to clear it despite the petitions being pending for seven years,” the court remarked.

A Bench, headed by Acting Chief Justice Manmohan, had earlier warned the civic authority of its dissolution if it did not make itself financially viable. The Bench said the citizens could not continue to live in “misery” due to the MCD's incompetence.

The court reiterated that it would direct supersession of the MCD and directed that the issue be listed for a daily hearing from April 8. “You all will have to be shown the door. You are incompetent to the core. You people are only fighting, have large egos and refusing to see the big picture,” the Bench, also comprising Justice Manmeet PS Arora, stated.

While the counsel for the MCD said the issue of payment of aid from the Delhi Government was pending before the HC, the city dispensation claimed there were no pending dues. The court said some alternative arrangement to the present system had to be found.