The Union Cabinet on Tuesday approved a bill to amalgamate three municipal corporations in Delhi. The Delhi Municipal Corporation Amendment Bill can be introduced in the current budget session of Parliament. Sources said that the integrated municipal corporation would be a fully fledged body and there would be equitable distribution of financial resources, which would reduce the expenditure liabilities for the functioning of the three municipal corporations and improve the services of the civic body in the National Capital Region.
Under this, some more amendments have also been approved in the original Act of 1957 to ensure greater transparency, better governance and a sound supply structure for effective services to the people of Delhi. Through this amendment the existing three municipal corporations will be amalgamated into one unified municipal corporation.
In the year 2011, the erstwhile Municipal Corporation of Delhi was bifurcated into three parts (South Delhi Municipal Corporation, North Delhi Municipal Corporation and East Delhi Municipal Corporation). The division of the corporation into three parts was also inconsistent in terms of territorial division and revenue earning capacity of each corporation. As a result, the gap between the resources available to the three corporations was quite large.
Sources said that over time the financial problems of the three municipal corporations started increasing and due to this they were facing difficulty in payment of salaries of employees and providing retirement benefits. Delhi was facing serious problems in maintaining civic services. Earlier, the State Election Commission had deferred the announcement of municipal elections. It was to be announced on March 9.