Now, car dealers against auction of sites in Sector 7

  • HT Correspondent, Hindustan Times, Chandigarh
  • Updated: Mar 04, 2015 12:51 IST

Two weeks after the municipal corporation (MC) decided to hold an auction for a total of 60 sites in the biggest car bazaar of the region in Sector 7, the dealers are now up in arms against the decision, saying they will not allow the auction.

Acting on the directions of the Punjab and Haryana high court on February 19, the House during a meeting had approved the policy for sale and purchase of second-hand cars in car bazaar.

The House had decided to auction all 60 sites in front of showrooms in the Sector-7 market. However, the MC has already invited application for the auction of these sites.

Gulshan Kumar, president, the car dealers’ association, Sector 7, said, “We will not allow the civic body to hold the auction. We have been working here for the past 30 years and have established our businesses. Also, the owners of showrooms in the market have filed a case in Punjab and Haryana high court for change of the site. Either we want an alternative site or we will function from here only, without an auction.”

He added they were going to submit a representation to the UT administrator and the MC commissioner in this regard on Wednesday. As per the approved policy, the Chandigarh residents, who deal with used cars or have an office in the city, will be allowed to participate in the auction for a period of two years that can be extended up to three years.

The reserved price for auction of each site will be `3 lakh. Apart from `30,000 as the earnest money, the applicants concerned will have to deposit additional amount of `20,000 on the day of auction. Earlier, only 43 car dealers were functioning from the market that comprises 60 sites. After this, some of dealers had moved the court. Five years ago, the MC’s finance and contract committee had approved that car dealers would park their vehicles in front of showrooms allotted to them in Sector 7, but out of 60 showrooms and only 43 are using the said space.

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