Directorate of Information & Publicity 
DIRECTORATE OF INFORMATION AND PUBLICITY
GOVERNMENT OF DELHI
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New Delhi: 29/01/2016
Delhi Govt response on MCD issue :
It is a matter of grave concern that the three Municipal Corporations are hiding facts related to payment of salaries of their employees.
It is not possible that if the corporations had spent the non-planned amount given to them by the Delhi government for the current financial year to pay salaries, then they would have been averse to get their accounts audited.
The three corporations have themselves admitted having received 100 % of the non plan funds - Rs. 892.92 crore for North MCD, Rs.465.53 crore for East MCD and Rs 830 crore for South MCD, under the non-planned head for the current financial year, which will come to an end on 31 March .
It is clear that 90% of the non-planned allocation is for payment of salaries, then the basic question is why the MCD employees have not been paid their salaries ?
The sequence of events indicates towards a massive salary scam in these corporations.
Apart from the above, there are serious questions which the MCDs need to answer :
- Is it not a fact that Delhi government did not seek any payment from MCDs out of Rs 6,000 crore loan they owe to the government, and which has been outstanding since many years now ?
- Is it not a fact that Delhi government also did not seek any payment of interest on these loans from MCDs this year ?
- Why are these MCDs not seeking Rs 1500 crore arrears from the DDA ?
The financial aid provided by the Delhi government is on the basis of a budget prepared for a period of 12 months under two heads i.e. Salary and Development. It is also important to note that the funds provided for Development are both, under the head ‘Plan’ and ‘Non-Plan’.
The main sources of funds of these corporations are external revenue (primarily through devolution of funds/grants-in-aid by GNCTD) and other resources (such as property tax, toll tax, transfer duty, electricity taxes, conversion charges, advertisement, parking charges etc.)
It is the obligation and responsibility of the corporations to provide the salary to its employees (including the sanitation workers). The corporations, despite receiving aid for Salary, has diverted and misappropriated the funds towards other purpose(s), without any approval from the competent authority.
It is pertinent to note that no utilization certificate has also been issued by the respective corporations upon the utilization of funds as required under the extant law.
PLAN GRANT-IN-AID PROVIDED BY DELHI GOVT TO MCD FOR FINANCIAL YEAR (FY) 2015-2016
(i) The plan grant-in-aid for FY 2015-2016 has been released to the Municipal Corporations.
(ii) The funds under the ‘Plan Head’ are released while taking into consideration the unspent amount available with the Corporations. A bare perusal of the status of finances and their release to the respective Corporations would clarify that the funds covering the expenditure incurred upto December 2015 have been released. It is also pertinent to mention that the total funds available as on date with the Corporations are over and above the expenditure that has been incurred and any amount required beyond this would also be released if required by the Corporations.
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