With the South Delhi Municipal Corporation (SDMC) set to seal Mother Dairy and Delhi Milk Scheme (DMS) outlets in its jurisdiction for non-payment of licence fee, South Delhiites might soon face a major milk and diary products crisis.
According to highly placed sources in the SDMC, decision to seal the outlets of milk suppliers was taken during a meeting on August 8. “During the meeting it was observed that SDMC must take sealing action against Mother Dairy immediately,” said the source.
Two state-owned milk suppliers were allotted space by the erstwhile Municipal Corporation of Delhi (MCD) at a nominal rate of Rs 10 per month. However, in 2011, a year before its trifurcation, the MCD had passed a resolution in its House meeting to enhance the licence fee to Rs 1,000 per year. However, the same was not adhered to by the two companies as also trifurcation of the MCD put the decision on hold.
The SDMC claimed that Mother Dairy has failed to submit their proposal to pay the dues despites assurances given during two meetings held on March 21 and June 3 this year. “In a meeting headed by the SDMC’s commissioner Punnet Kumar Goel, it was observed that SDMC started sealing action against Mother Diary in each of the four zones to facilitate recovery,” said a senior officer. The official said the decision to increase the licence fee was taken after Mother Dairy was found involved in commercial activities along the lines of private players. “The prime objective of Mother Dairy and Delhi Milk Scheme was to supply wholesome milk to the citizens of Delhi at reasonable prices as well as to provide remunerative prices to the milk producers. However, over the years these companies have started commercial activities by selling non-agro and dairy products like aerated drinks and ice creams among others,” he added.
Another official said the retail outlets of private companies have to pay licence fee as per the existing market rates, but, comparatively, these milk distributors have to pay negligible charges.
A senior official of the South Delhi Municipal Corporation said the total collection dues on 54 dairy booths of Delhi Milk Scheme in South zone of SDMC is to the tune of around Rs 2crore. “The three civic bodies are calculating the total dues on all outlets of Mother Dairy and DMS across the city. It is expected to be over Rs 110crore and SDMC share will be around Rs 40crore,” he added.
Two milk suppliers had approached the Delhi high court against revision of the licence fee. However, the HC has granted stay in the matter only in respect of SDMC’s order to increase the rent from retrospective effect.Sources said that the two other civic bodies – North and East Delhi municipal corporations, also in the process of issuing notices to the milk distributors.
