The Model Code of Conduct in place for the Lok Sabha polls has made it impossible to renew the agreement with SMS Infrastructure Ltd to collect toll tax from 127 entry points including Delhi-Gurgaon expressway, the South Delhi Municipal Corporation has told the Delhi High Court.
The municipal body has made the submission in an affidavit submitted before Justice Manmohan Singh in response to a plea by SMS that it be protected as it is losing a third of its total revenue as only six lanes have been allocated on the expressway for collection of entry tax.
"The answering respondent's (SDMC) contract with the petitioner (SMS) is expiring on May 16, 2014. In order to enter into a supplementary agreement, the answering respondent requires permission of the corporation... Further since Lok Sabha Election process is already initiated, its not possible for the answering respondent to get any kind of permission from the corporation in this period," the affidavit filed through advocates Gaurang Kanth and Biji Rajesh said.
"Therefore, it is not possible for answering respondent to enter into a supplementary agreement with the petitioner at this stage. However, further agreement involving SDMC, NHAI, Haryana government and IDFC would be executed for using six or more lanes for entry tax/toll tax collection at Rajokari toll plaza (of expressway)," it said.
Under a three-year contract worth Rs 945 crore, SMS 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 expressway.
SMS had contended before the court it will not be able to fulfil this obligation if it does not get more lanes on the expressway, the major source of its earnings.
The corporation, in its affidavit, has said it will put its best efforts towards minimising the loss, adding that it is ready to cooperate with SMS and provide whatever assistance is required by the contractor.
