The tussle between Delhi Metro Railway Corporation (DMRC) and the Municipal Corporation of Delhi (MCD) caused the hurdles on the development work on 75 acres of prime property in Delhi.

The developers have been trapped in the face off that started when the MCD objected the development work on the prime lands and asked to pay property tax to DMRC for commercial use of the lands.

Some ten years back, DMRC had acquired 340 hectares, of which 58% was government land, 39% agricultural land and 3 per cent private urban land when the work had started on Phase 1 of the Metro.

Now, the red, blue and yellow metro routes have been started, the DMRC decided to develop the additional prime property near to its routes. The MCD objected on the developmental work and waved Rs 452-crore property tax bill to DMRC to pay.

In 1996, the center has approved DMRC’s financial plan to develop additional property to generate up to 6 per cent of its revenue. In July 2003, the Urban Development Ministry said to MCD that the Cabinet has approved the proposal for implementation of the Delhi MRTS Project and the DMRC could generate resources through property development for next 20 years.

The matter came out in light in July 2005, when the MCD said that there was nothing in writing that DMRC not bounded to pay any property tax to MCD.

According to DMRC officials, DMRC Ltd can carry out the property development work on the lands that was made available by the government for MRTS works.

The 2006 National Urban Policy report justify the DMRC claim that Mass-Rapid Transport Systems can commercially develop land and use air rights over the land for transport infrastructure and for additional resources.

On the other hand, the MCD sent notices to DMRC for their work of commercial development at Inderlok and Shastri Nagar on Metro Line 1 that covers Rithala to Shahdara.

MCD has claimed that the building plans were yet not sanctioned by MCD. It also sent notices against the uses of commercial hoardings on Metro bridges, pillars and stations. It claimed that the display of ads and hoardings can not be used for any purpose without permission from MCD.

Later, MCD dropped the hoarding issue but claimed again on the matter of property tax. A senior MCD official said that DMRC is accountable to MCD for the commercial use of lands it owns the matter has been reached in the court and court has decided to hear the case after two weeks.

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