Sunday, May 15, 2011

SC orders DIAL to pay Rs 15 cr to MCD

The Supreme Court has asked Delhi International Airport (DIAL) to pay Rs 15 crore to Municipal Corporation of Delhi as an interim measure against the Rs 70 crore demand in property tax from the airport operator.

A bench comprising Justice D K Jain and Justice H L Dattu dismissed DIAL’s petition, challenging a high court order that asked the airport operator to pay Rs 15 crore as an interim measure.

The apex court observed that as the high court was to hear the matter in July, it would not be appropriate to stay it as this stage.

“Being in the nature of an interim arrangement, we are not inclined to interfere with the impugned order passed by the High Court. Accordingly, the Special Leave Petition is dismissed,” the bench said.

However, the bench extended the time to pay the amount by two more weeks.

MCD had raised Rs 70 crore tax demand for Indira Gandhi International airport, which is being operated by DIAL.

However, DIAL has submitted that some of the liabilities prior to May 2006 was on the Airport Authority of India, which earlier operated the airport. It said that out of Rs 70 crore, Rs 10 crore is to be paid by AAI.

It further submitted that DIAL has already paid Rs 1.32 crore to MCD as property tax under the self-assessment scheme.

Passing an interim order on April 26, the high court had asked DIAL to pay Rs 15 crore within three weeks and listed the matter on July 12 for next hearing.

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