HC relief for taxi drivers, Chandigarh MC told to de-seal stands

The court acted on the plea of the taxi operators, who submitted that there was an exorbitant increase in the lease rates by Chandigarh MC and they were not in a position to pay the same in lump sum

A day after the Chandigarh municipal corporation (MC) sealed over 30 private taxi stands over unpaid ground rent, the Punjab and Haryana high court on Thursday asked the civic body to remove its locks from the taxi stands, while also directing the taxi operators to clear the dues in instalments.

The taxi drivers submitted that they were ready to pay the ground rent as revised, but it should be charged in easy instalments. (Getty Images/iStockphoto)

“The locks of the temporary structures meant for taxi drivers in the parking will be opened by the respondent department with immediate effect and the drivers will be allowed to use the same...till the next date of hearing. Also, the civic body has been directed to consider the proposal of the drivers and make an effort to resolve the issue amicably,” said the order by justice Rajesh Bhardwaj.

The court acted on the plea of the taxi operators, who submitted that there was an exorbitant increase in the lease rates by MC and they were not in a position to pay the same in lump sum. They submitted that they were ready to pay the ground rent as revised, but it should be charged in easy instalments.

They submitted that MC sealed the temporary taxi stands forcibly on Wednesday without any notice and their belongings were locked inside.

In its response, the civic body stated that the taxi stands were in existence since MC’s inception in 1996. Initially, the lease rates were set at ₹5,100 per month for an area of 1,500 square metres. These were revised to ₹10,000 per month in 2018.

It said many defaulters had been paying the rent regularly until the MC House increased the rates. A few occupiers had stopped paying rent during Covid-19 pandemic. A number of defaulters had moved court in the past, but did not get any relief. There were a total of 59 defaulters, but some had started paying the owed rent.

MC also said they will consider the proposal of the taxi drivers for paying the outstanding arrears at the revised rates in easy instalments.

Meanwhile, the corporation will also take up the issue of late fee to be charged from the defaulters in the next House meeting. Some allottees have paid the ground rent, but have yet to pay the late fee, contending that it should be charged at 12% and not 24%.