E-Paper
Chandigarh: Audit flags lapses in estate office, ₹13 crore Motor Market dues unpaid
In 225 cases, the dues including– instalments, ground rent, and accrued interest amounting to ₹13,28,49,341 remained outstanding as of November 2025
The audit of the estate office, Sector 17, exposed a major lapse in enforcing revenue recovery norms, with government dues worth ₹13.28 crore unpaid by Motor Market allottees. The audit and inspection report for the period April 1, 2023 to March 31, 2025 was accessed by RTI activist RK Garg.
The audit highlights that under the Capital of Punjab (Development and Regulation) Act, 1952, the UT administration introduced the “Allotment of Sites on Leasehold Basis to Auto Spare Part Dealers and Auto Repair Mechanics Scheme, 1999.”
According to the scheme, the ground rent must be paid annually without demand and a maximum extension of six months can be granted with 6% annual interest. Failure to pay can attract penalties of up to 100% of the outstanding amount and recovery is to be carried out under statutory provisions of the 1952 Act
Despite these provisions, the audit found that the estate office allotted multiple sites in the Motor Market on a leasehold basis. In 225 cases, the dues including– instalments, ground rent, and accrued interest amounting to ₹13,28,49,341 remained outstanding as of November 2025.
Crucially, auditors noted that no concrete efforts to recover the pending amount were communicated, indicating a serious lapse in enforcement. When the issue was flagged during the audit, the Estate Office failed to furnish any reply.
The audit further flagged significant pending recoveries across multiple schemes: ₹1.69 crore outstanding in 714 out of 1,348 cases related to allotment/transfer of built-up booths under the 1991 scheme and ₹12.03 lakh pending in 246 cases under the 1979 scheme for cheap houses and subsidised industrial housing
In both cases, the estate office failed to enforce payment timelines or initiate recovery proceedings.
Out of 3,668 constructed booths, 307 remain unallotted across various sectors. Under the scheme for persons with disabilities, only 84 out of 113 booths were allotted
This resulted in the loss of potential revenue in the form of ground rent and depreciation of public assets. Estimated financial loss of ₹27.84 lakh due to non-allotment of booths meant for persons with disabilities
Auditors observed that such inefficiencies deprived beneficiaries while simultaneously impacting government revenues.
