Aam Aadmi Party alleges scam in toll tax collection by BJP-led MCD

Toll tax scam: The Municipal Corporation of Delhi (MCD) has dismissed the Aam Aadmi Party's allegations.

Pic Credit: File Photo

New Delhi: The Aam Aadmi Party (AAP) has written to Delhi Lieutenant Governor Vinai Kumar Saxena alleging a scam in toll tax collection by the BJP-led MCD and demanded an inquiry into the matter. The Municipal Corporation of Delhi (MCD) dismissed the claim, saying the company on which the allegations were levelled, was blacklisted for five years.

AAP leader and MCD in-charge Durgesh Pathak said toll tax collection is the largest source of revenue for the MCD.

"All the toll tax collection in Delhi goes to the MCD. There has been a large-scale scam in the collection of toll tax. In 2017, the MCD gave the rights of collecting toll tax to a firm for approximately Rs 1,200 crore. The company did not pay Rs 950 crore to the MCD and went to the court. The MCD won the case, but till now, no action has been taken against the company," he alleged in a media briefing.

Alleging that the MCD suffers a loss of Rs 1,180 crore due to the collusion of BJP and toll tax companies, he said tenders worth Rs 1,200 crore were awarded in 2017 but only Rs 250 crore reached MCD treasuries every year.

"The same tender was awarded for Rs 786 crores in 2021, that company still owes Rs 232 crores to MCD. As per information at hand, both the companies are owned and operated by the same person," he said.

"We have written to Delhi LG and MCD commissioner flagging this scandal. Hope that the culprits will be brought to justice and given the strictest possible punishment," he added.

He said the party suspects that some leaders of the BJP could also be involved in the ownership of these companies.

"Otherwise it would not be possible to run this scam at such a large-scale. I have written a letter on this matter to the LG and also to newly-appointed special commissioner for the MCD Ashwini Kumar and requested them to order an enquiry into this matter and arrest those who are involved in the scam," he said.

"I have also asked them for an appointment, so that I can meet them and submit to them the documents that I have regarding this scam," he added.

The new reunified MCD came into being on May 22 after unification of the North, South and East Delhi Municipal Corporations.

The MCD, in a statement, said the then South Delhi Municipal Corporation engaged an agency and executed contract agreement for collection of toll tax at Rs 1,206 crores per annum.

"The SDMC terminated the contract but the contractor challenged the termination notice before the High court. The High Court dismissed the petition of agency and the SDMC took over all the toll plazas and handed them over to a new contractor after following open tender system. The corporation has taken the matter very seriously and has taken every action possible against the contractor," it said.

The SDMC has initiated legal course of action for recovery of outstanding dues on account of toll tax and penalty there upon as per provision made in contract agreement.

It also stressed that the SDMC had blacklisted the agency from participating in tender process MCD for five years.

The then SDMC after termination of contract agreement with previous agency started process to engage another contractor for collection of toll tax.

After due process, the new contractor has been engaged and contract agreement has been executed on for collection of toll tax at Rs 786.60 crore per annum against reserve price of Rs 636 crore," it said.

The drop in the bid amount from Rs 1,200 crore to present Rs 786.60 crore is reflective of sustainable model and good economics, it said.

The present contractor has been paying full weekly remittance of toll tax as per the contract agreement after the restrictions due to Covid-19 have been relaxed.

"As per record submitted to the department, the owners/directors/partners of previous and present contractor are different persons," read the statement.