After failed bid to auction paid parking lots,reserve price may be reduced

After the Municipal Corporation failed to auction paid parking lots recently,a proposal is being mooted to reduce the reserve price and then hold another auction

Written by Express News Service | Chandigarh | Published: September 6, 2013 1:47 am

After the Municipal Corporation failed to auction paid parking lots recently,a proposal is being mooted to reduce the reserve price and then hold another auction. In the previous auction there were no takers after 12.36 per cent service tax was imposed. The contractors refused to bid for the parking lots stating that they would suffer losses.

A proposal to reduce the reserve price of the parking lots in accordance with the service tax being imposed would be discussed at meeting of the Finance and Contract Committee of MC to be held on September 9. The civic body had last month scheduled an auction of the paid parking lots. After recent notices from the Central Excise and Taxation department to recover service tax from paid parking contractors it was decided that the same would be done.

However,the contractors have refused to accept paid parking lots at this condition. They were demanding that either the paid parking rates be increased or the tax recovered from those who park vehicles or the reserve price of the parking lots be reduced.

Another issue that will be discussed in the meeting is increasing the money given to the resident welfare associations for upkeep of the parks in the area. It has been proposed that from Rs 1.50 per square metre currently being given,the amount should be increased to around Rs 2.50 per sq meter. Another condition that would be introduced is that it would be necessary for the associations to hire gardeners.

MC had recently introduced the concept of giving funds to the associations for upkeep of the parks in their respective area. With a large number of parks in the city,it was felt that the system would facilitate better maintenance. However,associations that had taken over the maintenance,complained that the funds allotted were not sufficient.

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