Chandigarh: High rentals force chemists to shut shop at GMSH-16
Two of the three private chemist shops have already gone out of business at GMSH-16, leading to long queues at the sole surviving shop
High rental charges of chemist shops at Government Multi-Specialty Hospital (GMSH), Sector 16, are forcing shopkeepers out of business.
With two chemist shops already shut down, including one recently, only a single chemist shop remains operational, along with the health department-run Jan Aushadhi Kendra.
The reduced availability of chemist shops has caused overcrowding and increased wait times for patients, with the lack of competition limiting options for affordable medicines.
Each of the three chemist shops were rented out against ₹17 lakh per month, which turns out to be around ₹20-21 lakh after taxes.
Dr Suman Singh, director, health services, UT, confirmed that a shopkeeper vacated his premises due to an inability to generate enough income to meet the rent.
“The shop was allotted after bidding only. The rent is decided by the UT engineering department. The tender will now be floated again to allot the shop to another trader,” she said.
UT chief engineer CB Ojha said, “We evaluate the shops rent based on the condition of the shop, when it was constructed and give a base rent. We have nothing else to do with the tender and allotment of the shop.”
A senior official from the administration, familiar with the matter, said that a competent authority could consider reducing rents to make them feasible for shopkeepers.
The issue of exorbitant rentals at GMSH-16 has been longstanding. Another allotted chemist shop was leased for ₹17.21 lakh per month plus 18% GST, but the owner failed to pay rent for two months and was evicted in May 2023. Meanwhile, concerns have also arisen regarding the lack of transparency in previous allotments.
The vigilance department had earlier filed an FIR against Sunil Kumar Jain, who operated a chemist shop at GMSH-16 since 1993 through multiple extensions and at rents significantly below market rates.
The shop’s lease, which should have ended in 1995, was renewed irregularly until 2023, bypassing the tendering process. Additionally, the shop was found to have illegally expanded by encroaching upon public passage, causing a ₹64.7-lakh loss to the exchequer. The shop was eventually reclaimed by the UT administration in February 2023, and a fine of ₹31.8 crore was imposed on the owner.
While officials work to address these irregularities, patients at GMSH-16 continue to face difficulties. The rush at the sole chemist shop often leads to delays, and the absence of competition has raised concerns about limited access to medicines and fair pricing, leaving patients frustrated.