Acting on the directions of the Punjab and Haryana high court, the municipal corporation house in its meeting held on Thursday approved the policy for sale and purchase of secondhand cars in the biggest car bazaar of the region at Sector 7.
The house decided to auction all 60 sites in front of the showrooms of Sector-7 market. City residents who deal with used cars or have an office in Chandigarh will be allowed to participate in the auction.
Nominated councilor Major DS Sandu (retd) suggested that MC should also look for an alternate site in a time-bound manner as a long time measure. A committee should be constituted immediately and a report should be given in three months.
It was approved that the open space behind showrooms in Sector 7 should also be considered for the same purpose as a temporary measure to cope with traffic congestion. Officers concerned will visit the market and submit its report shortly.
The MC has to file a reply in the Punjab and Haryana High court on February 28, the next date of hearing.
As per the approved policy, a person who wins the auction will get access to the area for a period of two years which can be extended up to three years. The reserve price of each site's auction will be `3 lakh. Apart from `30,000 as earnest money, applicants will have to deposit an additional amount of `20,000 on the day of auction.
Earlier, only 43 car dealers were functioning from all the 60 sites of the market, while the rest moved the court. Thereafter, on August 11 last year, the court directed the civic body to frame a policy within three months.
Five years ago, the MC's finance and contract committee had approved that car dealers would park their vehicles in front of the showrooms allotted to them in Sector 7, but there are a total of 60 showrooms and only 43 car dealers are using the mentioned space.
Surprisingly, these dealers are also using the four parking lots of the MC for the same purpose. Currently, the civic body is charging `2,809 from every car dealer, earning around `1.20 lakh per Sunday, making `62 lakh a year from the 43 car dealers.
New policy in a nutshell
The reserve price of auction of each site will be `3 lakh. Apart from `30,000 as earnest money, applicants will have to deposit additional amount of `20,000 on the day of auction.
City residents who deal with used cars or have an office in Chandigarh will be allowed to participate in the auction.
The car bazaar is on Sunday from 9am to 8pm.