MCD Recovers Just Rs 33 Lakh of Rs 5.5 Crore Construction Fines in 2025

The Municipal Corporation of Delhi has faced a significant shortfall in collecting penalties for construction and demolition violations across New Delhi, with civic representatives from wards including Jhilmil warning that enforcement is faltering after the civic body recovered just Rs 33 lakh out of Rs 5.5 crore in fines imposed during 2025.
Civic records reveal that in 2024, the MCD issued approximately 2,600 challans at construction sites for failing to adhere to dust control norms, levying fines totalling Rs 5.3 crore. However, enforcement teams managed to collect only around Rs 45 lakh of that amount.
In 2025, despite a 23 per cent increase in the number of challans to around 3,300, recovery dropped further. Out of the Rs 5.5 crore in penalties issued to construction and demolition violators, the civic body collected only around Rs 33 lakh, representing nearly 6 per cent of the total amount penalised and highlighting systemic gaps in enforcement.
Councillors across political parties raised concerns over the lapses and the MCD's overall preparedness during a House meeting on September 29, pointing out that construction continued unabated despite restrictions. Pankaj Luthra, the BJP councillor of Jhilmil, noted that challans have failed to deter offenders across the city.
"If we go by the records, hardly 10-20% people are adhering to the process. The slow response proves that people are hardly serious even when they are contributing to rising pollution," Luthra said, adding that departmental manpower constraints have caused significant delays in follow-up action against violators.
Under Stage I of the Graded Response Action Plan, enforced when the Air Quality Index reaches 201 to 300, construction work is permitted only with strict dust mitigation measures, carrying fines between Rs 50,000 and Rs 1 lakh for non-compliance. Under GRAP Stage II, dust mitigation measures become stricter, while GRAP Stage III mandates the complete halting of non-essential construction and demolition activities, alongside site sealings.
The recovery of fines for open waste burning has seen similar enforcement difficulties. While the National Green Tribunal mandates a Rs 5,000 fine under Section 15 for burning garbage or leaves, the MCD possesses no data on recoveries, despite issuing over 190 challans worth Rs 4.4 lakh in 2024 and nearly 800 challans worth Rs 8.7 lakh in 2025. An MCD official stated that collections remain difficult because acts are mostly carried out by unidentified people or those unaware of regulations, adding that sub-divisional magistrates in the revenue department have the authority to prosecute offenders when challans go unpaid.


