SDMC initiates contempt proceedings against DGSCL

SDMC initiates contempt proceedings against DGSCLThe South Delhi Municipal Corp. (SDMC) has accused e-way firm DGSCL of hiding Delhi High Court orders from the Punjab & Haryana High Court that had held it back from collecting toll tax on the Delhi-Gurgaon expressway.

On Friday, the SDMC initiated contempt proceedings against the DGSCL (Delhi-Gurgaon Super Connectivity Ltd.), and claimed that it suffered irreparable losses as DGSCL didn't collect toll, estimated at roughly Rs 18 lakh daily) at the Rajokri toll gate.

The Corp. said in its petition, "The contemnor didn't collect toll on 05.09.2012 from commercial vehicles entering Delhi and allowed the free flow of traffic. Each and every minute, the petitioner is suffering irreparable loss."

As per a 2008 arrangement, the DGSCL was to collect toll tax at the Rajokri border in aid of the then Municipal Corp. of Delhi. In return, the civic body was to pay service charge equivalent to 11 per cent of the total tax collection to the e-way firm.

On April 25 last year, the Delhi High Court passed status quo order and later ruled that the order would remain in force till the row between the two entities over the issue of the service tax was settled.

The SDMC is now accusing the DGSCL of deliberately defying the Delhi High Court's orders.

Justice Rajiv Shakder yesterday issued a notice to the e-way firm asking it to reply by 27 of September, the next date of hearing.

On September 4, the Punjab & Haryana High Court forbade the DGSCL from collecting toll for fifteen days for its failure to deal with traffic congestion at the 32-lane Sirhaul toll plaza in Gurgaon.