NEW DELHI: The Delhi Jal Board (DJB) incurred an excess expenditure of Rs 2.65 crore due to its failure to pay property tax on time, according to a report by the Comptroller and Auditor General (CAG) of India. The report highlights that the DJB not only missed out on a 15 per cent rebate of Rs 2.59 crore but also had to pay Rs 5.41 lakh in interest for the delay.
As per Section 113 of the Delhi Municipal Corporation Act, 1957, the North Delhi Municipal Corporation (NDMC) had issued a demand notice to DJB on April 18, 2019, seeking Rs 4.97 crore in property tax for 2019-20. The notice also mentioned a rebate of Rs 74.58 lakh if the payment was made by June 30, 2019. However, DJB neither paid the tax nor provided property details for assessment.
NDMC reassessed DJB’s properties and revised the tax demand to Rs 17.35 crore, including Rs 12.26 crore for the Narela Water Treatment Plant, which had been left out of assessment since 2006-07. In March 2020, NDMC issued a “Warrant of Distress” to DJB’s bank, leading to the attachment of Rs 17.35 crore from its account.
Payment lapse
DJB said it was in discussions with municipal corporations to adjust the tax against pending charges. But, CAG stated DJB should have ensured timely payment.