DMRC told to pay 1.1 crore as con­ver­sion charges

The Times of India (New Delhi edition) - - TIMES CITY -

New Delhi: Delhi De­vel­op­ment Au­thor­ity (DDA) has served a show-cause no­tice to Delhi Metro Rail Cor­po­ra­tion (DMRC) for not pay­ing con­ver­sion charges amount­ing to Rs 1,100 crore for a plot in Dwarka, which DMRC has used for prop­erty de­vel­op­ment.

A DDA of­fi­cial said the land own­ing agency had al­lot­ted a large land par­cel in Dwarka to DMRC for the con­struc­tion of metro sta­tion and other pur­poses. Of this land par­cel, around three hectares was al­lot­ted for prop­erty de­vel­op­ment to DMRC. DMRC uses land in many ar­eas for de­vel­op­ment of res­i­den­tial, com­mer­cial or of­fice spa­ces to gen­er­ate rev­enue. The three hectare land, which has be­come a bone of con­tention, was leased out by DMRC to a ho­tel, which is now op­er­at­ing from the area.

DDA has now asked DMRC and the ho­tel to pay con­ver­sion charges dat­ing back from 2008, with the to­tal amount­ing to Rs 1,100 crore. “There is no is­sue with DMRC leas­ing the land al­lot­ted to it for prop­erty de­vel­op­ment, but it has not fol­lowed the proper norms while do­ing so and that is why they are now be­ing asked to pay con­ver­sion charges and have been served a show-cause no­tice,” said a se­nior DDA of­fi­cial. “We will wait for DMRC’s re­sponse to plan the fur­ther course of ac­tion,” he added.

DMRC said that it has re­ceived a no­tice from DDA and has al­ready pre­sented its case. “The mat­ter has al­ready been taken up by DMRC and a suit­able re­ply against this has been sent to DDA with all the facts,” said Anuj Dayal, ex­ec­u­tive di­rec­tor (cor­po­rate com­mu­ni­ca­tions), DMRC.

Prop­erty de­vel­op­ment is an im­por­tant com­po­nent of Delhi Metro’s non-fare box rev­enue gen­er­a­tion. “While sanc­tion­ing Delhi Metro Phase-I project in 1996, the Union Cab­i­net had man­dated that ap­prox­i­mately 7% of the ini­tial project cost should be gen­er­ated through prop­erty de­vel­op­ment on lands trans­ferred to DMRC for the project. In ad­di­tion, re­cur­ring in­come should be gen­er­ated through prop­erty de­vel­op­ment for pay­ing back sub­or­di­nate debts, etc,” a DMRC of­fi­cial said.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.