On Monday, July 3, Delhi Government came under fire as the Supreme Court criticised it for expressing its inability to provide funds for Regional Rapid Transport System (RRTS) project. A two-judge bench comprising Justice Sanjay Kishan Kaul and Justice Sudhanshu Dhulia directed Aam Aadmi Party-led Delhi Government to submit a detailed account of its spending on advertisements for the RRTS project in the past three financial years.
Delhi NCR Rapid Rail
— Bar & Bench (@barandbench) July 3, 2023
Before Supreme Court bench led by Justice Sanjay Kaul, Delhi govt expresses inability to provide funds for the project.
Bench directs it to place on record detailed account of its spending on advertisements of the project in the last three financial years.… pic.twitter.com/cp3L85SImJ
Notably, the apex court had directed the Delhi government to deposit 500 crores for the project within ten days in an order on 21st April 2023. However, on 3rd July, Delhi Government expressed its inability to deposit the funds. The court criticised the AAP-led Delhi government over the delay in the implementation of the Delhi-Meerut Regional Rapid Transport System (RRTS) project. The Central Government and the Uttar Pradesh government have already provided the funds that they were required to deposit for the project. The Delhi government, however, has shown reluctance in paying for the project, claiming the centre should bear the cost.
The court questioned the government why it did not make any provisions for the funds in the budget for a project that would ensure smooth transportation, considering it allocated funds for the advertisements. The court said, “If you have money for advertisements, why don’t you have money for a project that will ensure smooth transport?” Furthermore, the court directed the Delhi government to provide a detailed account on record of the money it has spent on advertisements for the RRTS in the past three financial years.
Background of the case
The Delhi-Meerut Regional Rapid Transit System (RRTS) is a semi-high-speed rail corridor. The under-construction project will connect Delhi, Meerut, and Ghaziabad. It is part of three rapid rail corridors under Phase One of the RapidX project.
The Delhi-Meerut corridor is around 81.15 KM long. The distance between Sarai Kale Khan, Delhi Modipuram, and Meerut will be covered in just 60 minutes. The project’s estimated cost, as per the 2019 court document, was Rs 31,632 crore, which was supposed to be paid in a 60:40 equity ratio. The Central Government contributed Rs 5,687 crore, while the State of Uttar Pradesh contributed Rs 5,828 crore. Delhi was supposed to contribute Rs 1,138 crore for the project. However, in the 2018-19 budget, the Delhi government did not make any budgetary provisions for the project. The Delhi government argued that the Central government should bear the entire expenditure.
It was suggested by Amicus to utilise money available with the Delhi government under Environment Compensation Charge (ECC). At that time, Delhi govt had Rs 1,106 crore in the fund. The Delhi govt argued a major chunk of the funds was utilised by it as part of the court’s orders to buy electric buses. However, the court did not find the argument justifiable. The court then ordered the Delhi government to immediately release Rs 265 crore towards the project within ten days.
In the April 2023 orders, the court said, “There was apparently a reluctance on the part of the NCT of Delhi to contribute to the amount, and then via media it was found was that from the ECC fund collected, the amount should be allocated for deposit. Learned amicus has referred us to the order and has no objection to the releasing of Rs.500 crore on the same terms and conditions as set out in the aforesaid order. We accordingly direct the Delhi Government to contribute Rs.500 crore, which includes tax liabilities from the ECC fund, within ten days.”
The court further called upon the Delhi government to make the required budgetary provisions to ensure the remaining Rs 415 crore can be provided for the project.
