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Chandigarh health department terminates lease of GMSH-16’s sole chemist
The shop had been allotted to Sunil Kumar Jain on lease for only two years through an auction in 1993. Though the first lease ended in 1995, the hospital authorities never floated a fresh tender and had been extending the lease every five years, with the latest extension occurring in 2019 – for up to 2024, an inspection by the health department had found.
The UT health department on Monday terminated the lease of the sole chemist at Government Multi-Specialty Hospital (GMSH), Sector 16. The shop was being operated by the same firm for 29 years through multiple extensions and renewals, and at a rent lower than the market price.
The shop had been allotted to Sunil Kumar Jain on lease for only two years through an auction in 1993. Though the first lease ended in 1995, the hospital authorities never floated a fresh tender and had been extending the lease every five years, with the latest extension occurring in 2019 – for up to 2024, an inspection by the health department had found.
The lease period of the shop was subsequently extended on several occasions on the basis of the finance department notification issued on April 19, 2000. It was finally withdrawn by the UT health department on September 28, citing that the notice was not meant for shops/booths in health facilities.
After withdrawing the notification, the UT health department had on September 30 issued a show-cause notice to the chemist. “Since the finance department orders have been withdrawn, it is clear that extensions in the lease period of the chemist shop were not appropriate,” the show-cause notice read.
Stay petition pending
The chemist, however, had moved the district court, seeking stay orders on the show-cause notice, orders of which are still pending with the court.
The UT health department, in its termination orders, had stated that a new medical shop has been allotted the contract, for a monthly rent of ₹17.1 lakh, after auction. However, the existing chemist shop owner has encroached the passage and even though doubled in size, he is presently paying just ₹2.3 lakh per month.
“The monthly rent of the existing medical shop for the area presently occupied should be about ₹35 lakh per month. Hence, the administration is losing government revenue of about ₹32 lakh per month i.e. more than ₹1 lakh per day.”
‘Shop can be vacated only after court’s orders’
Since the matter is pending in the district court, the termination order of lease is subject to the final orders passed by the court.
“After hearing detailed arguments from both sides, the court reserved the decision on the application till November 1,” said Gagandeep Singh Wasu, counsel for director health services. He added that the chemist had filed a premature application for interim stay because the state has only put him on notice to explain his cause with supporting documents as of now.
UT health secretary Yashpal Garg, said, “Since chemist has got the stay orders from court in the ‘encroachment’ related notice, he has not been asked to vacate the shop. The final decision will be taken by the court.”
“The lease has been terminated but the decision will be taken by the court. The show-cause notice was issued which is against the law of equality and also shows disrespect towards the court orders (stay orders already given by court on encroachment matter). The order of withdrawal of any contract on the basis of clause No.20 is illegal and void in the eyes of law,” said the chemist shop owner Sunil Kumar.
