Date:14/02/2006 URL: http://www.thehindu.com/2006/02/14/stories/2006021421270300.htm

New Delhi

DU colleges bow under MCD pressure, pay tax dues

Sandeep Joshi

They also give undertakings to deposit the remaining amount

Principals of five colleges deposited cheques for Rs.10 lakhs each
"Financial crunch" is cited as the main reason for the failure to clear the dues

The civic body has stepped up its tax collection exercise

NEW DELHI: Buckling under pressure from the Municipal Corporation of Delhi, five Delhi University colleges whose bank accounts were attached by the civic body last week made partial payments of their property tax dues on Monday besides giving written undertakings that they would deposit the remaining dues by the end of the current financial year.

The Principals of the five colleges -- Hansraj (dues Rs.59 lakhs), Shri Ram College of Commerce (Rs.48 lakhs), Kirorimal College (Rs.47 lakhs), St. Stephen's College (Rs.42 lakhs), Hindu College (Rs.20 lakhs) -- visited the MCD's Assessment and Collection Department and deposited cheques for Rs.10 lakhs each.

"They have also given written undertakings promising to clear all their arrears and property tax dues accumulated since the Unit Area Method of tax assessment was implemented in 2004 by March 31 this year," informed a senior Assessment and Collection Department official, adding that they have now asked for de-freezing of their bank accounts that were attached last week.

The Principals cited "financial crunch" as the main reason for their failure to clear the dues, the official said, adding that the colleges were now likely to write to the University Grants Commission requesting to grant them additional funds so that they could clear their property tax arrears.

"We had also sealed the bank accounts of Delhi University for non-payment of their property tax. The varsity's ex-parte dues were worth Rs. 38 crores, but we recalculated it and revised it to Rs.6 crores on merit basis. Delhi University had Rs.3.28 crores in its bank account and now we have got the entire amount transferred to our account," the official said. As a result, Delhi University, which has also given the MCD a written undertaking to clear the dues by the end of this financial year, is now reportedly facing severe financial crisis and is unable to even give salaries to its employees on time.

The civic body that has stepped up its tax collection exercise to meet the target of over Rs.1,300 crores has been able to collect more than Rs.100 crores during the past one month, taking this year's collection to almost Rs.600 crores so far. The MCD has not only attached bank accounts of major defaulters including that of government organisations, it also has been serving auction notices to organisations and individuals asking them to immediately clear their dues to avoid harsh action.