The Delhi High Court Today (1 March) cautioned that it would advise the Central government to dissolve the municipality if it has become financially unsustainable.
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NEW DELHI: The Delhi High Court Today delivered a stark warning to the Municipal Corporation of Delhi (MCD), stating that failure to disburse salaries, pensions, and arrears to its present and past employees in accordance with the 7th Central Pay Commission‘s recommendations could result in its dissolution.
In a session presided over by Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora, the bench expressed exasperation over MCD’s entanglement in numerous legal battles due to its corruption and ineptitude. The Court emphasized its frustration in continually granting extensions to the municipal body to settle its outstanding debts.
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The Court underscored that should MCD fail to rectify its internal affairs, an alternative administrative framework would be devised, rendering the existing municipal corporation obsolete.
“We have extended considerable leniency, but we will not extend any further assistance. You are capable individuals. Should you neglect to remunerate your staff and restore financial stability, we will take drastic measures, including dissolution. The constitution authorizes such action, and we are prepared to implement it. Your incompetence necessitates acknowledgment; there is no room for it. Your inefficiency and corruption are spawning litigation, which we will not tolerate. Rectify your affairs promptly, or we will take necessary action. If resources are scarce, we will devise an alternative system,”
-the Court asserted.
The Court expressed disapproval towards the Municipal Corporation of Delhi (MCD), the Delhi government, and the Central government for engaging in a blame-shifting exercise regarding the financial distress faced by the municipality.
“You [MCD] are shifting responsibility to the State government, while the MCD claims the Central government should provide the funds. These employees are your responsibility. They are not hostages in the hands of terrorist groups waiting for ransom. They are entitled to their salaries. It is your statutory duty. Previously, you [MCD and Delhi government] were at odds, but now you must find a solution together. Either you ensure financial viability or face dissolution,”
-the Court emphasized.
Acting Chief Justice Manmohan also suggested to the Central government counsel present in Court to contemplate issuing a show cause notice under Section 490 of the Delhi Municipal Corporation Act. Section 490 pertains to the dissolution of the corporation.
However, upon the Delhi government and MCD counsel’s request for one more opportunity to resolve the matter, the Court adjourned the case until March 28.
The Court was presiding over a series of petitions filed by current and former MCD employees seeking their salaries, pensions, and arrears in line with the 7th Pay Commission’s recommendations. Advocate Divya Prakash Pande, representing the MCD, assured the Court that salaries had been disbursed up to January and that February’s payment would be made within a week.
Pande mentioned that following the merger of the city’s three municipal corporations, the civic body’s financial situation had improved significantly, and a policy decision had been made to allocate Rs 15-20 crores monthly to settle the arrears.
The Delhi government and MCD counsel proposed that the Court might direct State and municipal officials to convene a meeting to resolve the financial strain.
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However, the Court, having been involved in the case for nearly seven years, declined to issue such a directive. It emphasized that it was incumbent upon the MCD to rectify its financial situation.
“Failure to do so might lead the Court to recommend to the Central government the dissolution of the municipal corporation,”
-the bench warned.
“You should organize a meeting independently,”
-the Court advised before adjourning the case.
This episode marks yet another instance of the Court’s admonishment of the MCD for its failure to fulfill its obligation to pay employee salaries, echoing a similar warning issued during the previous hearing on February 9, 2024.
Previous report- Delhi High Court Issues Ultimatum to MCD Over Unpaid Salaries and Pensions
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