Accusing BJP of doing "dirty politics" over the issue, Tourism Minister Kapil Mishra also claimed there is a "conspiracy" to make Delhiites reside in the middle of garbage.
Even as a section of sanitation workers today went on a strike seeking "immediate" release of funds for payment of their salaries and arrears, the minister said that all dues have been cleared by Delhi government to the municipal bodies.
"There has been corruption of crores of rupees in the municipal corporations. That is why they are not able to even release the salaries of their staff despite receiving all their dues from the government and taxes from people," Mishra said at a press conference here.
Scores of municipality sanitation workers today staged a protest outside Chief Minister Arvind Kejriwal's residence over their demands.
Saying that on January 15, the commissioners of all three corporations had in a written submission admitted that all dues had been released to them by the government, the minister sought to know "where the money given to the MCDs is going?"
"When the government has given the entire amount for the current financial year meant to be spent on the salaries of employees, why has it not reached them?" he asked.
Mishra charged that a "conspiracy is being hatched to defame Delhi before the entire country and the whole world".
"The senior leadership of BJP has hatched a conspiracy to make the people of Delhi reside in the middle of a garbage heap. BJP is doing dirty politics on this issue," he claimed.
According to the government, the entire amount of Rs 892.92 crore for North Delhi Municipal Corporation and Rs 465 crore for the East Corporation under the same head have been released by it.
In case of the South Corporation, an amount of Rs 668 crore, that is, approximately 80 per cent of the revised estimate of Rs 830 crore for the current financial year, has been released, it added.
"On the one hand, mayors are saying they don't have money for the salaries of their staff, but they have Rs 300 crore lying unspent in their account," claimed Mishra.
"Where has the money collected through parking, property tax, toll tax, electricity tax gone? They have increased parking rates and are still not releasing the salaries," he added.
The minister also claimed that although DDA owes Rs 1,555 crore to the municipal corporations, no BJP leader and mayors are demanding this money.
"If they are facing problems in obtaining these funds, I along with my Cabinet colleagues will meet Union Home Minister Rajnath Singh and request him to release this amount," said Mishra.
The erstwhile unified Municipal Corporation of Delhi (MCD) was trifurcated into the North, South and East corporations (NDMC, SDMC and EDMC) in 2012.