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Rapid Metro causing Rs 5 crore loss per month, says Municipal Corporation of Gurgaon

Rapid Metro causing Rs 5 crore loss per month: MCG

A row has broken out between the Municipal Corporation of Gurgaon (MCG) and Rapid Metro over the non-payment of advertisement tax. The corporation has accused the private Metro service company of not paying the taxes amounting to Rs 4-5 crore per month.

“The private Metro company has not paid the taxes to the corporation. The matter is already pending with the Punjab and Haryana High Court,” senior deputy mayor of Gurgaon Yashpal Batra told MAILTODAY.

Earlier this year, the court had said that till a final decision is declared, the status of Rapid Metro stations and coaches will remain the same and no one will have the authority to change advertisements placed at inner and outer circles of different stations and coaches.

Despite that, the corporations officials have alleged that the private Metro company has been continuously changing ads on both the counts. “There could be a huge scam running within the MCG itself with some of its officials involved in it. Their ignorance towards this issue to benefit a private company could result in the loss of crores of rupees. We have demanded a detailed investigation in this matter. A law enforcing agency has been roped in to know status of all companies existing in Gurgaon,” Batra said.

Apart from the MCG, Haryana urban development authority and district administration of Gurgaon are the other stakeholders and entitled to share the revenue generating from advertisements.

Rapid Metro Gurgaon spreads across a 5.1-km stretch in the cyber city area comprising six stations and each of the stations have different inner and outside advertisement partners.

Rapid Metro is also earning money through providing spaces in coaches for advertisements. “Rapid metro has been benefited by Rs 4-5 crore per month with the help of few MCG officials. We have decided to raise this issue during the house meeting scheduled for the first week of November. We would find out the actual status and reason for the non-payment of the taxes,” Batra said.

On the other hand, the officials of Rapid Metro have rubbished all the allegations. “Rapid Metro is abiding by the directives issued by the Punjab and Haryana High Court. In the interim, we are awaiting the advertisement policy to be issued by MCG for more clarity,” a statement issued by Rapid Metro said.
[“source-businesstoday”]

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