KMC issues notice to K-Electric for outstanding dues

Warns KE to clear bills or their buildings will be sealed


Our Correspondent November 08, 2016
Shaikh pledged to rid KMC of corruption. PHOTO: ONLINE

KARACHI: In a move to get dues cleared, the Karachi Metropolitan Corporation (KMC) has issued a notice to yet another utility service provider - K-Electric (KE) - after issuing a notice to the Sui Southern Gas Company (SSGC) last month.

The KE failed to clear its municipal dues, despite having been given a deadline for seven days by the KMC on October 30. The KMC, which is already in a financial crunch, recently issued a recovery notice for Municipal Utility Services Charges (MUCT) worth Rs36,408,000 to the KE. The KMC had introduced the MUCT from January, 2009, by replacing fire tax and conservancy charges for the maintenance and development of municipal services.



Last week, the Sindh High Court restrained the KMC authorities from sealing the headquarters of the SSGC to recover a defaulted amount of Rs150 million in municipal services tax till November 15. A letter addressed to the KE managing director by the KMC MUCT senior director Syed Raza Abbas Rizvi, a copy of which is also available with The Express Tribune, said that the company is directed to clear the outstanding dues within seven days after receiving the notice in order to avoid any adverse action and legal proceedings.

The letter also mentions that the bills of MUCT have been issued to the KE from January, 2009, till date, but the company failed to pay the amount that has been accumulated to Rs36,408,000 against their grid station number 74.

The MUCT department had published a public notice in various newspapers for payment of the municipal utility charges. However, the company did not pay the bill. The amount in question is being notified as arrears under the Land Revenue Act, 1967, which shall be recovered by way of arrest, distress of sale moveable as well as immovable property in question or any other property belonging to them.

Rizvi said that they will soon send a second notice through magistrate to the KE. He said that if the power utility provider has any queries and objections on their billing, the KMC is ready to sit for reconciliation. However, Rizvi added that they can take action against the KE and can even seal the KE buildings as a last resort if the company does not pay the dues.

On the other hand, the KE communication director maintained that this matter is of technical and legal nature. He added that currently, they are reviewing its technical aspects and will respond appropriately after consideration and evaluation.

Published in The Express Tribune, November 9th, 2016.

 

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