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Chandigarh MC serves ₹4.5-crore recovery notices on two parking contractors
The contractors have been given a week to clear their dues, failing which MC will scrap the contract and take over parking lots
The Chandigarh municipal corporation has served notices on two parking contractors for recovery of around ₹4.5 crore in unpaid licence fee. If they fail to clear the dues within a week, the civic body will initiate contract cancellation proceedings against them.
The notices come just two days after the MC General House decided against granting any licence fee exemption to the two contractors. The MC had divided 89 parking lots into two zones and allotted their management to two firms for three years in January last year. The contract was extendable for up to five years.
The notice issued by the MC commissioner on Sunday states: “You (contractor) are directed to deposit the licence fee within a week positively. Failing which your contract will be terminated, you will be blacklisted, your security amount (over ₹1.5 crore each) will be forfeited and the pending amount will be recovered as per due course of law (sic).”
Even earlier, the MC had issued recovery notices (on October 19 and a reminder on November 10), but the matter was kept pending as the House was yet to decide on the contractor’s request for remission of fees.
The Zone-1 contractor, Patna-based Ram Sundar Prasad Singh, has to pay ₹1.67 crore and Zone-2 contractor, Delhi-based Pashchatya Entertainment Pvt Ltd, has an outstanding amount of ₹2.88 crore, calculated till November 12.
The Zone-1 contractor had sought a fee exemption of ₹1.02 crore and the Zone-2 contractor had sought ₹98.64 lakh exemption on account of losses due to the Covid-19 lockdown and free parking given to MC employees. However, both BJP and Congress councillors opposed the request in the House meeting held on Friday.
The MC had scrapped the contract of the previous company running the parking lots over poor management. The working of the present contractors had also come under increased scrutiny in the MC House with councillors castigating the two firms for poor management.
“As previously done, the MC will take over the parking lots if the current contractors fail to pay the outstanding amount. It could be done by this month end if the need arises,” said an MC official, on the condition of anonymity.
Meanwhile, a parking contractor representative, on the condition of anonymity, said, “The last resort is to go to court, but we will still request the MC to reconsider its decision.”
