Rent for Hotel Parkview rooms not paid for 7 years, Chandigarh admn puts CITCO on notice

As part of an agreement, CITCO has to pay lease money for 148 hotel rooms handed over by the Chandigarh administration since 1984

The office of assistant controller (finance and accounts) rents under the UT administration has issued a notice to CITCO for failing to clear rent worth ₹1.75 crore owed for rooms at Hotel Parkview, Sector 24.

Originally, Hotel Parkview, then known as Yatri Niwas, had three blocks of apartments, including 24 each in two blocks and 48 officers’ apartments in the third block. (HT Photo)

As per the agreement, CITCO (Chandigarh Industrial and Tourism Development Corporation Limited) has to pay annual/monthly rent for 148 rooms at the hotel, but it has failed to keep its end of the bargain for the past 7-8 years. Notably, out of the total of ₹1.75 crore dues, ₹83 lakh has accrued as interest only.

Originally, the hotel, then known as Yatri Niwas, had three blocks of apartments, including 24 each in two blocks and 48 officers’ apartments in the third block.

As per the demand notice, in 1984, the UT administration gave the charge of 24 apartments (1301 to 1324) of Block A to CITCO for the establishment of Yatri Niwas to provide affordable accommodation to middle-income tourists visiting Chandigarh.

Under the lease agreement, ₹1,000 per apartment per annum was fixed as rent.

In 2000, the administration allotted 24 more apartments (1325 to 1348) of Block B on the same terms and conditions.

Later in 2014, UT handed over the 48 officers’ apartments (1201 to 1248) as well and a licence fee of ₹1,500 per month was to be charged for each of these apartments.

But while CITCO converted the 48 apartments, leased till 2000, into smaller rooms, the 48 officers’ apartments have been lying abandoned, resulting in huge financial loss and gradual deterioration of infrastructure.

In 2018, the UT administration increased the annual lease money for Blocks A and B from ₹1,000 to ₹1,500, along with an annual 5% increase.

The demand notice stated that the outstanding amount should be deposited immediately without further delay.

CITCO chief general manager Hardeep Singh said, “I have not seen the demand notice, but we will clear all pending dues.”