Faced by lowest bids ever by tenders,observers demand re-auction of parking lots

The observers for the auction of paid parking lots,held recently,while submitting their observations,on Thursday,stated that the auction should be held again.

Written by Express News Service | Chandigarh | Published: February 3, 2012 2:18 am

The observers for the auction of paid parking lots,held recently,while submitting their observations,on Thursday,stated that the auction should be held again. They brought to attention that the auction has led to a loss of Rs 10 lakh to the civic body and would reduce the reserve price of the parking lots for next year.

The auction of five paid parking lots was held on January 11. While one parking lot found no taker,the others were auctioned at a price lower than what they fetched when these were auctioned earlier. The parking lots were auctioned in Sectors 17,34 and Lake. In fact the price that the parking lots were auctioned for was not much higher than the reserve price.

One such parking lot was in Sector 34 that was auctioned for Rs 21.35 lakh against the reserve price of Rs 21 lakh. During the last auction the highest bid was around Rs 28 lakh. The others were also auctioned for low prices. With the reserve price fixed at 75 per cent of the highest bid received,if the bid amount is low the reserve price also reduces for next year’s auction.

One of the observers,councillor Pardeep Chhabra said that the auction needs to be held again. “The auction led to losses to the MC. The bids received were not much higher than the reserve price. Due to this the reserve price for the next auction will also reduce. All these aspects need to be kept in mind,” he said.

Another observer Saurabh Joshi said,“The paid parking lots are revenue generating ventures. The city has a high number of registered vehicles. People also come into the city from adjoining areas. The parking lots are overflowing with vehicles. The auction should be held again.”

The observers had earlier raised objections in the manner in which the auction was held. When they demanded a re-auction,they were asked to submit their objections in writing. With almost a month having passed since the auction was held the Municipal Corporation has not taken a decision on the status of the auction.

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