Pay interest on Rs 3.7 cr to Delhi civic body: SC to UPSIDC

The Supreme Court today asked the UP industrial development corporation to pay interest at six per cent on the principal amount of Rs 3.7 crore, refunded by it to the MCD which gave back the possession of over 54 acres of land, purchased for relocating a slaughter house out o fDelhi.
The East Delhi Municipal Corporation (EDMC), one of the successors of the tri-furcated municipal corporation of Delhi (MCD, had initially purchased 54.27 acres of land at Ghaziabad from the Uttar Pradesh State Industrial Development Corporation (UPSIDC) by paying Rs 3.7 crore and had later given up its possession in 2003.

The apex court had on February 23, 2017 taken a serious note of non-payment of the principal amount by the UPSIDC to the EDMC for 14 years.
A bench comprising Chief Justice J S Khehar and Justice D Y Chandrachud asked the UP corporation to ascertain various facts relating to subsequent sale of the 54.27 acres after the EDMC surrendered it in 2003 to third parties and pay the interest from the date it received the payment.
The bench granted three months time to the UPSIDC to collate the data and pay interest to the EDMC at the rate of six per cent on the principal amount of Rs 3.7 crore.

Earlier, the court took note of the fact that the UPSIDC had paid the principal and had said, "The only issue, that remains to be adjudicated upon, is the compounding of interest, which is liable to be paid by the UPSIDC to the EDMC."

The bench had sought information from the UPSIDC with respect to the transfer of the land for which the refund was made to third parties.
The court was hearing a plea of the Buffalo Traders Welfare Association filed way back in 1996.
The unified MCD then had taken a plot of land from the UPSIDC for establishing a slaughter house, but had later returned its possession.

However, the money paid to the UPSIDC for the plot was not returned till February 23.
The bench had said the UPSIDC's managing director will have to appear in person if the cheque is not honoured and said, "You have kept the money for 14 years and do not want to pay even the principal amount. We will send him (MD) to jail."
The apex court said it would deal with the interest part later and made it clear to the counsel for the UPSIDC to pay the principal amount within a week.