The Supreme Court, while considering an application filed by the Government of NCT of Delhi in a petition filed by M C Mehta, to utilise Rs. 500 Crores of Environment Compensation Charge (ECC) Fund towards the payment of Delhi -Meerut RRTS project, has held that the tax component of payment is refundable.
An application was filed by the Government of NCT of Delhi for permission to utilise Rs.500 crores of Environment Compensation Charge (ECC) Fund towards the payment of Delhi-Meerut RRTS project, amidst the petition by M C Mehta as an interlocutory application.
RRTS Project is a new, dedicated, high speed, high capacity, comfortable commuter service connecting regional nodes in NCR. It is different from conventional Railway as it will provide reliable, high frequency, point to point regional travel at high speed along dedicated path way.
There was apparently a reluctance on the part of the NCT of Delhi to contribute to the amount and then the via media found that from the ECC fund collected, the amount should be allocated for deposit.
Counsel for the National Capital Regional Transport Corporation (NCRTC) pointed out that the aforesaid will not complete the exercise as there is still a balance amount of Rs. 415 crores left. It is his submission that the Delhi Government is required to make budgetary provisions for the aforesaid.
The Amicus Curiae referred the Supreme Court to the order and has stated that there is no objection to release of Rs.500 crores on same terms and conditions as set out in the aforesaid order.
The original order is dated 06.3.2019 where while dealing with the Regional Rapid Transport System the contribution of the Government of India for the project in question as State of Uttar Pradesh and NCT region of Delhi was also specified.
The Bench called upon the State Government to make the requisite budgetary provision, if not already made and thereafter to pay the amount promptly so that the project is not delayed.
The Apex Court Bench of Justices Sanjay Kishan Kaul and Ahsanuddin Amanullah directed the Delhi Government to contribute Rs. 500 Crores which includes tax liabilities from ECC fund within ten days.
The Supreme Court further clarified that “The tax component is refundable and refund shall be credited to ECC fund (concurrent with the earlier directions)”.
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