The Hindu : MCH bid to stop SCR in its tracks

Online edition of India's National Newspaper
Sunday, Mar 16, 2003

Southern States

Southern States - Andhra Pradesh-Hyderabad

MCH bid to stop SCR in its tracks

By J.S.Ifthekhar

HYDERABAD March 15. The question of payment of service charges is snowballing into a major controversy between the South Central Railway (SCR) and the Municipal Corporation of Hyderabad. The issue has become a bone of contention with the two departments taking diametrically opposite stand.

While the SCR maintains that it need not pay any service charges as per a Supreme Court ruling, the MCH insists on payment under the existing instructions of the Finance Ministry. As recently as February 14, the civic body despatched a letter to the SCR on the subject although the latter denies receipt of any such letter.

The letter addressed to the General Manager, SCR, sought payment of Rs. 3.74 crores towards bulk user charges for the years 2001-2003 since the financial year is coming to a close. Further it asked the SCR to file self- assessment returns and pay service charges on its properties as per the present capital values and guidelines of the Finance Ministry. Service charges from the SCR cannot remain "static" for years together, the letter said.

A senior official pointed out that it had become impossible for the MCH to provide facilities like sanitation, roads and streetlights to the railways without recovery of the cost. Residents of railway properties used the approach roads and general conservancy services to Rail Nilayam, railway stations, airport, public places. They also made use of street lighting on approach roads and storm water drain services. It was the MCH, which cleared garbage on all approach roads to railway properties and bore the cost towards its transportation.

The SCR cannot seek shelter under the plea that the Ministry of Urban Development is looking into the question of taxation of Central Government properties. It is an internal matter of the Railways and the MCH is not concerned with it, an official remarked.

The MCH feels the concept of public utility applied to SCR as much as to anyone else. When the airport, BSNL and even people in slums are paying why cannot the SCR do the same. The railways occupied 12 sq. km of area in Secunderabad and other places. People living in railway colonies numbered 50,000 as against the city's population of three million. Taking into account all these factors, the MCH levied user charges of Rs. 1.87 crores for the year 2001-2002. But till date the SCR has not paid this amount.

According to MCH, the payment of service charges in respect of Central Government properties is regulated by four orders of the Government of India issued by the Ministry of Finance in May 1954, March 1967, May 1976 and August 1986.

As per these orders even when Central Government properties do not avail of any service from a local body they will have to pay service charge at 33.1/3 of what similar private properties are required to pay. When they avail themselves of civic services partially they have to pay service charges at 50 per cent of property tax payable by others. If the civic services are fully availed then the Central Government properties have to pay service charges at 75 per cent of what is payable by private properties.

The issue of service charges dominated the ward committee meeting on Saturday with all the Secunderabad corporators expressing concern. They are believed to have suggested staging of a dharna to recover the service charges due to the MCH.

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