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KE, KMC tussle over unpaid dues comes to an end

A reconciliation agreement has been signed by both parties

SAMAA | - Posted: Jul 11, 2019 | Last Updated: 2 years ago
Posted: Jul 11, 2019 | Last Updated: 2 years ago

KMC head office. Photo: Online


The payment dispute between the Karachi Metropolitan Corporation and K-Electric was settled after power supply was restored to the KMC headquarters and other offices Wednesday night on orders of the Supreme Court.

Both organisations have reached an agreement over the claimed their outstanding amounts on each other, which have been reconciled between the concerned authorities of KMC and K-Electric.

When KE disconnected power supply to the KMC headquarters on June 28 over non-payment of its electricity bills, Karachi Mayor Wasim Akhtar held a press conference and stated that the KE owed Rs8 billion to KMC for installations, including electric poles and sub-stations on KMC land.

On the other hand, KE said that the metropolitan corporation has outstanding electricity dues of Rs4 billion.

Officials from KMC’s land and lease department and KE’s works and estate department have agreed to settle the dispute and a reconciliation agreement has been reached.

After the reconciliation, KE has to pay Rs1,176.511 million instead of Rs8 billion to KMC and the corporation has to pay Rs750 million to KE. Of this, Rs340 million has already been paid to KE.

In its hearing on July 10, the apex court had ordered the KMC to pay Rs170 million for its unpaid electricity bills of the last three months before the next hearing, which is scheduled for July 24.

As per the reconciliation documents, the Rs1,176.511 million that KE has to pay is for the occupancy value and land rent of its 83 sub-stations established on KMC lands. The deadline for payment is June 20, 2020.

The reconciliation documents were signed by KMC Land Director Shaikh Kamal Ahmed, KMC Land Deputy Director Muhammad Anwar Malick, the head of KE’s works and services department and KE Works and Services General Manager Nasir Masoom.

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