The Delhi High Court has issued a notice to the Delhi government and the Lieutenant Governor, seeking their response to a petition demanding the formation of the sixth Delhi Finance Commission. Leader of Opposition Vijender Gupta filed the petition, alleging that the commission, due to be established in April 2021, remains unconstituted. Justice Sanjeev Narula has instructed both parties to explain why the court should not accept the petition. The court has scheduled the next hearing for November 6.
Vijender Gupta argued that forming the Finance Commission is essential to comply with constitutional requirements. He emphasized that the commission’s duties include reviewing the financial status of panchayats and municipalities and making recommendations to the Governor. According to Article 243 Y (2), the Governor must present the commission’s report to the State Legislature along with an explanatory memorandum. Gupta contended that the Delhi government’s failure to set up the sixth commission since the fifth commission’s term expired in April 2021 has denied the Delhi Municipal Corporation its share of state finances.
Gupta pointed out that the fifth Delhi Finance Commission’s recommendations, valid only until March 2021, have become outdated following the restructuring of municipal corporations under the DMC (Amendment) Act, 2022. This act merged the East, North, and South Delhi Municipal Corporations into the Delhi Municipal Corporation. Gupta criticized the Delhi government for continuing to rely on obsolete financial recommendations. He argued that this practice is inadequate and unconstitutional in light of the new circumstances. Gupta urged the court to direct the immediate formation of the sixth Delhi Finance Commission to address these issues and benefit the public and municipal employees.
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