NEW DELHI: The Delhi Metro Rail Corporation, which has become the pride of the city, owes the New Delhi Municipal Council (NDMC) over Rs.16.18 crore in property tax. Fighting a similar battle with the Metro, the Municipal Corporation of Delhi (MCD) is also waiting to be paid over Rs.250 crore in property tax.

For its part, the DMRC argues that it was formed under the Indian Railways Act and is exempt from property tax. "The Railways are not required to pay property tax. Since we also come under the same Act, the question of paying tax doesn't arise. As for paying NDMC property tax, we have not received a notice,'' said a DMRC official.

While the matter of DMRC defaulting on property tax is pending in the High Court, the NDMC is waiting eagerly for the verdict as the same rule will apply to it.

"The Metro is claiming that it comes under the Indian Railways Act, but the Delhi Metro Act doesn't state that it is exempt from property tax, so why should they ask for it,'' pointed out an NDMC official. The DMRC is not alone on the list of institutions that have not paid up the amount due to the NDMC. The Central Public Works Department -- that is liable to pay a service tax to the civic agency -- tops the list of defaulters.

The committee that had been set up to examine the overall revenue position of the NDMC has in its report noted that the CPWD is highly irregular in making payments and there are substantial dues against its various divisions. Apart from Government departments, the other perpetual problem that the NDMC faces is that there are institutions like the All-India Institute of Medical Sciences (AIIMS), the Masonic Lodge and some charitable institutions on Bhai Veer Singh Marg, that claim exemption under Section 62 of the NDMC Act for doing charity. However, sources in NDMC point that this exemption cannot apply across the board. "They cannot legally claim exemption under this section, especially if they get substantial funds from the Government. But there are some cases that have gone on perpetually,'' claimed an official.

However, the NDMC in a bid to recover some money is now dangling a carrot to these defaulters. This year it is offering them a rebate up to 50 per cent relief in the hope that they will pay up.

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