North Corporation demands rent from SDMC
New Delhi- Due to grave monetary issues pertaining the Civic centre, the North and South Delhi Municipal Corporation is estranged. The corporation has demanded a whooping sum of Rs. 137 crore as rent for two years from the South Delhi Municipal Corporation (SDMC) for the usage of the civic centre.
This decision was sought by the Standing Committee of the North Delhi Corporation at the time of finalizing the Budget of 2013-14.
The Civic Centre which was owned by the Standing Committee of the North Delhi Corporation post trifurcation, has been operational from the property for rent in Delhi. Owing to the rent demand, the South Delhi Corporation is not willing to pay any rent to the North civic body stating that they had not entered into any contract or agreement pertaining the payment of rent.
The building in which the SDMC is operational is the 28-storey Civic Centre located on Minto Road. A rent amount of Rs. 62 crore has been demanded by the NMDC for giving its premises to house the office.
Last year April witnessed the trifurcation of the unified Municipal Corporation of Delhi (MCD). The SDMC which did not have its own headquarters was asked to operated from an MCD building until it got its own office. Despite both the municipal corporations being ruled by the same party, the rent has still being charged and is the first such incident.
An official from the NMDC stated that they will very soon demand rent from the SDMC which when calculated would come up to Rs. 62 crore for the past nine months and Rs 75 crore for the next year.
SDMC on the other hand has refused to pay the rent and is citing legal provision stating that no contract had been signed regarding the payment of rent. A SDMC official stated that since there were no signed agreements at the time of trifurcation, they are not bound to pay any rent.
The building which was built by unified MCD with their own money without a single penny being spent by the North Corporation. Hence they do not have any right to charge rent from the SDMC. However SDMC is looking out for a land to construct its own office.
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Image courtesy of renjith krishnan at FreeDigitalPhotos.net
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