Chandigarh IT director orders recovery of ₹1 crore rent from SPIC

SPIC was initially operating from Punjab Engineering College, Sector 12, but in 2017, it shifted to the Entrepreneur Development Centre (EDC) Building at IT Park, Chandigarh, which is the property of the department of IT

A year after an audit pointed out unauthorised collection of rent by the Society for the Promotion of IT in Chandigarh (SPIC) for a government building, the Chandigarh information technology (IT) director has ordered recovery of ₹1 crore from the society.

IT director Rupesh Aggarwal said he had ordered the recovery of rent amounting to ₹1 crore from SPIC, as they had been collecting rent without authorisation for a building belonging to Chandigarh administration. (HT File)

The matter was highlighted in the audit report of the office of the Principal Director of Audit (Central) in 2022. SPIC operates under the department of IT, Chandigarh, to implement various plans for promoting the IT industry in the city.

According to the report, SPIC was initially operating from Punjab Engineering College, Sector 12. But in 2017, it shifted to the Entrepreneur Development Centre (EDC) Building at IT Park, Chandigarh, which is the property of the department of IT.

While the building was provided to SPIC on rent, it illegally sublet a portion of the property and had been collecting rent from tenants for five years, it added.

As per the agreement, SPIC was supposed to use a part of the EDC building on rent at a rate of ₹60 per square foot and all income was to be deposited in the Consolidated Fund of India (CFI).

However, SPIC failed to pay the rent to the department of IT, and kept 50% of the sublet portion’s rent with themselves, depositing only 50% with the department. SPIC claimed that they retained 50% as they were managing the society.

IT director Rupesh Aggarwal said he had ordered the recovery of rent amounting to ₹1 crore from SPIC, as they had been collecting rent without authorisation for a building belonging to the UT administration.

He confirmed that SPIC was now paying full rent to the IT department.

On fixing responsibility for the lapse, Aggarwal said they will first recover the money and then decide on the matter.

RK Garg, president of the Second Innings’ Association, a senior citizens’ body, who had raised the issue in 2017, demanded a vigilance inquiry into the case and accountability for the serious lapse.

Undue benefit of ₹1.62 crore provided to SPIC: Audit

The 2022 audit report had also found that the department of IT made an overpayment of more than ₹1.62 crore to SPIC, providing them with undue benefits.

According to the report, the UT administration decided to hand over the Sampark project permanently to SPIC from July 1, 2015, at the rate of ₹25 per transaction for both urban and rural Sampark Centres.

However, during scrutiny of the vouchers, it was discovered that the department had paid ₹25 per transaction to SPIC from February 1, 2015, instead of July 1, 2015, in violation of the order. This led to an overpayment of ₹1.62 crore to SPIC for the five-month period.

The department justified the payment of enhanced charges from February 1, 2015, by stating that SPIC had requested the enhancement of rates on February 5, 2015. However, the department’s plea was not acceptable, as the contract for the period from January 1, 2015, to June 30, 2015, was extended on the same terms and conditions ( ₹8.89 for urban and ₹3.90 for rural centres per transaction).

Furthermore, although the sanction for enhancement of transaction charges to ₹25 was sought from the administrator in August 2016, the payment of increased rates from February 1, 2015, was not sought.