Date:28/12/2007 URL: http://www.thehindu.com/2007/12/28/stories/2007122860510300.htm

New Delhi

NDMC launches amnesty scheme for defaulters

Manisha Jha

The scheme is valid from January 1 to March 31, 2008

Defaulters will now have to pay only the bank rate of interest instead of compounded rate
The scheme also envisages settlement of dues of Government offices

NEW DELHI: If you happen to live in the Lutyens’ Delhi area and want to settle a pending legal dispute regarding your water or electricity bill, then help is at hand.

The New Delhi Municipal Council has launched a new amnesty scheme under which residents of the area can approach the civic body to avail themselves of a rebate on late payment surcharges and misuse charges levied on their water or electricity consumption and settle their pending court cases.

The scheme, valid from January 1, 2008, to March 31, 2008, was approved by the NDMC this past week.

Launched with the idea of settling longstanding arrears as well as generating revenues for the NDMC, the scheme is expected to benefit defaulting consumers of a total of 90,000 connections provided in the NDMC area.

Under the scheme, consumers involved in disputed cases will now have to pay only the bank rate of interest instead of compounded rate levied on the late payment surcharge.

Moreover consumers with arrears of up to Rs.500 of over one year on January 1, 2007, will be given a full waiver across all categories. In addition, the scheme also envisages settlement of dues of Government offices on the basis of principal demand without any late payment surcharge. At present, the civic body has accumulated arrears of Rs.117 crore in water and electricity consumption charges across its various consumer categories including Government offices, non-gazetted officers, gazetted officers, private shops and establishments, MPs and Ministers.

A large part of these arrears are also involved in prolong litigation in the district courts, consumer forums, State or National Commission and the High Court from where a number of cases have been referred to the civic body for amicable settlement of pending disputes through mediation. An NDMC official said: “The Commercial Department has been facing great difficulty in settling of such type of cases in the absence of any specific policy or guidelines so far.”