VASCO: Bowing down to pressure, the Hindustan Petroleum Corporation Limited (HPCL) authorities released part payment of Rs 1.47 crore to the Mormugao Municipal Council (MMC).
According to MMC Chairperson Deepak Naik, the civic body is on the verge of bankruptcy while the two oil companies which have been operating on municipal land leased out to them, have outstanding dues of around Rs 24.97 crore including penal interest.
Naik said the civic body had leased out its property to Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) land measuring 8038 square metres and 9070 square metres respectively. However, despite reminders, both the oil companies failed to pay rent to MMC with an increase of 10 percent every year and due to which the dues started adding up and now the total outstanding dues have reached Rs 24.97 crore. He said in order to recover pending dues MMC had decided to take serious steps and had even warned the oil companies that the civic body would be forced to take severe action including sealing of premises.
“I am happy that out of two oil companies, HPCL which has its petroleum storage tanks and other facility on the municipal land released part payment of Rs 1.47 crore to MMC. I hope other pending payments will be released by HPCL and even IOCL should come forward to release the pending dues failing which we would be forced to take severe action,” Naik told reporters.
