SDMC may shut milk booths over licence fee

A handful of milk booths across South Delhi could face action over pending licence fee payments, with the local civic body planning to seal a few outlets in each zone to put pressure on the defaulters.

Milk supply will not really be affected when the South Delhi Municipal Corporation (SDMC) initiates action against Mother Dairy booths, but officials are hoping that the sealing helps in recovering dues.

At a meeting of senior officials last week, the SDMC decided that it would start by sealing two Mother Dairy outlets in each of its four zones in order to recover licence fees.

At odds

As per directions, a copy of which is with The Hindu , the SDMC will consult its counsel before taking any action.

Delhi’s civic bodies and Mother Dairy, whose dairy products, fruits and vegetables are sold through about 800 outlets across the city, have not seen eye-to-eye on whether increased rates of licence fee can be charged with retrospective effect. The erstwhile-Municipal Corporation of Delhi had hiked the licence fee from Rs.100 to Rs. 300 per outlet per year in 2006.

Then, the civic body again increased the fee in 2012, citing the commercial success of the booths to ask for the same rate paid for a general trade licence.

While some outlets are paying Rs. 1,200 as licence fee, many have not been paying, several SDMC officials told The Hindu .

In the meantime, the SDMC had asked the milk outlets to start paying the revised fee with retrospective effect from 2006, for which the High Court granted a stay.

As per the SDMC, two meetings were convened by the Land and Estate Department on March 21 and June 3 this year to discuss the matter. Officials decided that since Mother Dairy had failed to hand in a proposal for paying the outstanding dues, the SDMC would take action.

When contacted, a Mother Dairy official said that the matter was sub judice and declined to make any statements saying that the matter is expected to come up for hearing in the High Court in October.