KMC empowered to recover utility charges, SHC told

The Karachi Metropolitan Corporation opposed on Tuesday a court stay order granted in favour of the Sui Southern Gas Company in pursuance of the former's Rs151.57 million municipal utility service recovery notice and submitted before the Sindh High Court that the corporation was fully empowered to recover utility charges.

Filing an application against the court stay order, KMC director Mohammad Arshad Khan submitted that the corporation was entitled to recover utility charges through a resolution approved by the defunct city district government and the resolution was also protected under the province's 2013 local government law .

He submitted that under Section 159 of the Sindh local government act, the KMC was empowered to collect all kind of taxes and fees for utility purpose and the petitioner had not availed the appellate remedy under the law.

The court was requested to dismiss the petition as factual controversy was involved in the dispute. The court had earlier restrained the KMC from taking any coercive action against SSGC in pursuance of its Rs151.57 million municipal utility service recovery notice.

The SSGC counsel submitted that the KMC had no authority to claim or charge the amount demanded through the impugned recovery notice.

He submitted that the KMC had issued an impugned notice under the garb of the so-called resolution passed by then city district government under the Sindh local government ordinance for the payment of municipality and utility service tax even though the law had been repealed after that.

The petitioner submitted that the SSGC’s cleaning activities were carried out by its staff and it utilised its own resources to manage KMC-related municipal services so the bills being sent to the petitioner were unjustified and illegal.

The court granting the application of the KMC for an urgent hearing issued a notice to the SSGC. The court also issued notice to the Clifton cantonment board and a private builder on a contempt of court application. A non-government organisation had moved the court against construction of a multistory building in violation of the cantonment by-law in Block-8 of Clifton. The counsel for the NGO submitted that the builder in connivance with the cantonment board was raising an illegal construction despite the court’s order.