HC seeks SDMC response on plea of toll contractor

The Delhi High Court today sought response of the South Delhi Municipal Corporation (SDMC) on a plea by the civic body's contractor, which has claimed it is losing one-third of its total revenue as only six lanes have been allocated on Delhi-Gurgaon Expressway for collection of entry tax.
The contractor, SMS Infrastructure Limited, has been entrusted with the responsibility of collecting entry tax from 127 toll points around Delhi, but it contends that 33 per cent of its monthly amount of Rs 26 crore to be paid to SDMC comes from the Delhi-Gurgaon Expressway.
Justice Manmohan Singh gave the SDMC time till March 25 to respond to the claim of SMS Infrastructure, which was not a party to the civic body's settlement with National Highway Authority of India as per which six of the 16 lanes on the expressway were allocated for toll collection.

The contractor was also not a party to the tripartite settlement among NHAI, Delhi-Gurgaon Super Connectivity Ltd (DGSCL) and lead financier IDFC, as per which 12 of the 16 toll plazas, causing huge traffic snarls, would be dismantled.
During the proceedings, SDMC contended the contractor has been assigned all the 127 toll points surrounding Delhi as per a three-year contract worth Rs 945 crore.
SMS Infrastructure, however, said that it is required to pay Rs 26 crore monthly to SDMC and it will not be able to fulfil this obligation if it does not get more lanes on the Delhi-Gurgaon Expressway, the major source of its earnings.

NHAI and SDMC had on February 26 told the court that they have arrived at a settlement according to which six toll lanes have been given to the civic agency to collect tax from private cabs and trucks coming into the capital.
As per the settlement agreement, SDMC will have to pay rent to NHAI for use of national highway land, toll booths and office space given to the civic body for collecting entry tax, the terms of settlement said.
NHAI and SDMC also agreed to review the status of the arrangement after 30 days or as and when required.