Leaseholders sublet Sec-17 shops, profit from UT laxity
In blatant violation of norms, most showrooms in Sector 17 which the UT administration has leased out to traders for a nominal Rs 55,000-a-month rent have been sublet at rates between Rs 10 lakh and Rs 20 lakh a month.chandigarh Updated: Aug 26, 2013 10:02 IST
In blatant violation of norms, most showrooms in Sector 17 which the UT administration has leased out to traders for a nominal Rs 55,000-a-month rent have been sublet at rates between Rs 10 lakh and Rs 20 lakh a month.
The administration owns 20 shop-cum-offices (SCO) in Sector 17, which were given on lease to boost trade in the city in the late 1960s. A senior official who did not wish to be named said these showrooms were non-transferable and could not be further given on rent. However, with the UT estate office turning a blind eye, majority of the traders have been flouting norms by leasing out the properties to multi-national companies for several years.
Official data shows that each showroom is leased out for a period of five years. The lease is renewed on expiry of the period. Contacted, UT deputy commissioner (DC) Mohammad Shayin said the issue had come to their notice. “The estate office will initiate a survey this week. Action will be taken against those found flouting the norms,” he said.
SCOs in Sector 17 are the most expensive property in the city. Collector rate is the highest here. In Sector 17 this year, it was fixed at Rs 7.20 lakh per square yard, which was Rs 4.8 lakh per square yard last year.
A source said the traders had been “desperately trying” to reach a solution by way of proposing a one-time payment for the showrooms. The issue was taken up by the administration, but in vain.
A source said the administration has also received a complaint, demanding a probe into the practice. Despite repeated attempts, UT finance secretary VK Singh was not available for comment.