South Delhi Mayor, Subhash Arya, on Saturday said that the Delhi state Government is trying to destroy the functioning of the corporations by not releasing grants.

He said, as per rules corporations have their share in funds released by the centre. The state Government is not implementing the Finance Commission recommendation and stopping the corporations to grow. Due to shortage of funds, salaries, pension, and developmental projects are suffering.

Arya said that till 2007-08, Delhi Government was giving 5.5 percent to Municipal Corporations under the ‘Global Share of Taxes’. It was reduced to 4 percent and 1.5 percent is kept under the ‘Municipal Reform Fund’. In 2012-13 under MPF Rs.60 crore was released against the demand of Rs.135 crore and since 2013-14 no MRF is released to Municipal Corporations.

 "Under MRF Rs.391 crore is pending. Govt must give Rs.560 crore till this year under this head," said Arya.

The Mayor said, "after the implementation of the ‘Unit Area Method’ in 2004, then Government assured us to compensate the losses due to its implementation but it is still pending since 2005-06. But till now no fund is issued to us leading to a due of more than Rs.1,500 crore. We demand that the state government immediately release our funds."

He also said, Corporations are carrying out works in authorised colonies, unauthorised colonies and rural areas but no fund is released to us under these schemes as grants.

He added that under plan Schemes multi-level parkings, roads, schools, community centres and RUB bridges are made but the Government is not releasing fund in timely manner leading to delay in projects and timely delivery of services to Delhites. He said under plan head schemes Rs.950 crore is pending. For education alone Rs.554 crore is due. For this financial year, the first instalment is not released fully. He demanded full instalment till June 2015.

The Mayor said that under various schemes timely grants are not released by the Delhi Government to Corporations. He asked the Delhi Govt. to release all Grants under various heads immediately.