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The DMRC and MCD have been fighting over the land use for almost four years now. The face-off started in 2006,when the Municipal Corporation of Delhi (MCD) objected to the commercial development work carried out by the Delhi Metro Rail Corporation (DMRC) on many Metro stations and asked the latter to pay property tax.
The DMRC contended that it can carry out property development work citing the 2006 National Urban Policy report which says Mass-Rapid Transport Systems can commercially develop land and use air rights over the land for transport infrastructure and additional resources.
On the other hand,the MCD sent notices to the DMRC for commercial development at Inderlok and Shastri Nagar Metro stations on Line 1 saying the building plans were not sanctioned by the MCD.
In September 2008,the DMRC temporarily stopped work at the Inderlok Metro station after the MCD sent them a notice warning that it would seal the premises if work was not stopped immediately.
The MCD claims its land allotment contract with the DMRC and Section 143 of the DMC Act clearly mention that the DMRC must not use the land for any commercial purpose and that all commercial land use and construction activity must have prior sanction from the MCD.
The civic body recently introduced a proposal to hike the rate of land allotment to the Metro,claiming that while the DMRC is allotted land at subsided rates for public service,they use it for commercial activities without sharing the revenue generated with the MCD. The proposal is yet to be approved by the MCD Standing Committee.
Meanwhile,both bodies approached Chief Secretary Rakesha Mehta in 2006,who in turn advised them to approach the Appellate Tribunal. According to the MCD,both DMRC and Parsvnath Developers Ltd approached the Tribunal. The Tribunal vide orders dated June 4,2010 declined to grant any interim relief to Parsvnath.
Parsvnath and the DMRC contended at the time that the Ministry of Urban Development and Poverty Alleviation vide a letter date July 21,2003 allows DMRC to generate resources through property development. They added that another clarification dated September 27,2009,issued by the Ministry exempts certain constructions undertaken by the DMRC within the operational structure of the Metro stations,from having to obtain prior building approval.
The MCD,however,refuted the contention saying that the Urban Development Ministry exemption pertains to construction of structures above the platform that are integral part of Metro station buildings. It said that though the Centre has permitted commercial use of a certain part of the DMRC properties,nowhere has the permission been granted to build any of these structures without following the proper procedure or obtaining prior permission.
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