MCD to attach bank a/cs of BSES subs for non payment of elec tax

New Delhi, Oct 18 (UNI) The MCD has warned BSES subsidiaries - BSES Rajdhani and BSES Yamuna - that if they failed to pay Rs 143.38 crore arrears by way of electricity tax by October 22, it would attach the bank accounts of these Distcoms.

''An amount of Rs 94.83 crore is recoverable from BSES Rajdhani Power Ltd and Rs 49.05 crores from BSES Yamuna Power Limited as arrears by way of electricity tax. However, these companies have been coming out with unacceptable and illogical contentions for avoiding the payment of the amount and engaging themselves in unnecessary litigations.'' In its latest order in the matter, the Delhi High Court has directed that these companies be asked to make the full payment of the arrears.

''Keeping in view the directions of the Court, we have issued orders on October 16 asking the BSES Rajdhani Limited and the BSES Yamuna Power Limited to make full and complete payment without any counterclaim,'' Chairman of the MCD Standing Committee Vijender Gupta told mediapersons here.

Warning that non payment of the electricity tax arrears would force MCD to attach the bank accounts of these Distcoms, Mr Gupta said,''though in normal course the bank accounts of these companies can be attached immediately or within a couple of days of the date of the issuance of the order(October 16), in case of BSES subsidiaries, we will wait for a week for them to pay their arrears as per the directions of the High Court. Only in case of non payment of dues by October 22 will the MCD attach the bank accounts of these companies.'' Alleging that there are a number of irregularities in functioning of the BSEs, Mr Gupta said,''it has been charging commercial rates from MCD buildings housing hospitals, community services, gardens and parks among others, whereas MCD is a public utility institution and is functioning as per the DMC Act to serve the citizens and provide civic services without any commercial mechanism and system.

It is absolutely unjust to charge MCD institutions on commercial basis.'' Mr Gupta expressed the hope that wiser counsel would prevail on the BSES management and they will follow order of the MCD as stipulated by the high Court and release payment of electricity taxs in lump sum by October 22 and not give MCD an occasion to take harsh steps such as attaching bank accounts of BSES.

UNI