Speaking from Bengaluru, where he is undergoing naturopathy treatment, Kejriwal alleged there were "massive scams" in three Bharatiya Janata Party-ruled municipal corporations and demanded a Central Bureau of Investigation inquiry into them. He said his government does not owe any money to the civic bodies.
Besides a loan of Rs 551 crore, Kejriwal said Delhi government is also releasing Rs 142 crore to the North Delhi Municipal corporation as sought by it by way of stamp duty last week.
"An impression is being created as if Delhi government is responsible for the financial mess in the MCDs which have been ruled by the BJP for the last 10 years. There are huge scams in MCDs. A situation is being created through the strike of the municipal workers to show that there is a crisis in Delhi.
"The Modi government has dictatorial tendencies. Someone told me they are trying to create a situation to impose President's Rule in Delhi the way they imposed it in Arunachal Pradesh," the chief minister said.
Exuding confidence about winning next year's municipal polls, Kejriwal said situation in the MCDs is such that they should be dissolved and fresh elections be held immediately.
He said joint front of 19 Unions of MCD Employees have called for dissolving the civic bodies and bringing them under the Delhi government.
The strike by the sanitation staff of municipal bodies demanding payment of dues entered the eighth day on Wednesday, crippling the garbage disposal system. They have been joined by teachers, doctors, nurses and contractors of the civic bodies.
Demanding a CBI probe into the affairs of MCDs, Kejriwal said "If CBI could probe us then why not the MCDs. We had ordered inspection of accounts of the civic bodies but they refused to cooperate."
The chief minister said his government has allocated double the amount of funds to the three civic bodies in the current fiscal compared to the previous year which, he alleged, has been diverted.
The chief minister said it was with "great difficulty" that his government has arranged Rs 551 crore for extending the loan even though the government was facing a shortfall of Rs 3,000 crore in VAT collection.
"We had to postpone some of our present commitments to next year to manage this money," Kejriwal said.
The decision to extend the loan was taken at a meeting between MCD commissioners and representatives of the Delhi Government. The amount has been given to enable the MCDs to pay salaries to the employees till January 31.
"Where did the money go? As Manish Sisodia says there has been a major salary scam. Money has been stolen. House tax revenue, toll tax revenue, advertising revenue, electricity tax everything has been stolen. It is a classic case of financial mismanagement," said Kejriwal.
Alleging graft, he said the East Delhi Municipal Corporation only collected Rs 12 crore as advertising revenue in the current fiscal.
"It should have been at least 20-25 times more. There is a scam here also. Illegal hoardings are owned by BJP leaders. Employees have lost their faith in MCDs. Doctors have written to us seeking that their services be transferred to Delhi government. I have asked Sisodia to examine the proposal." Kejriwal said.
On the BJP's demand for implementation of the recommendations of the Fourth Finance Commission, he said the Delhi Government would accept it only if the panel's recommendation for handing over the DDA is accepted by the Centre.
"The Fourth finance commission report was not implemented last year when Delhi was under President's rule. Nor were the Municipal reforms funds released.
"We are ready to implement the Fourth Finance Commission report only when the Centre hands over the DDA to us as recommended by the same report. Municipal reform funds are only for the purpose of reforms. It cannot be paid to corporations under loss.
"If salary is not paid to me for two months even I will be in distress. People have made up their mind. AAP will win whenever polls are held next," said the chief minister
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