Chandigarh civic body may terminate contract of parking contractors for failure to pay licence fees

Mitra had served a notice to the parking contractors — M/s Pashchataya Entertainment Private Limited and M/s Ram Sundar Prasad Singh — on November 15 and given them a week’s time to submit their licence fee, which they failed.

The contractors were slapped a notice on November 15 stating that they need to deposit Rs 4.55 crore failing which their contracts would be terminated.

In the notice served by Mitra, it was stated that M/s Pashchataya Entertainment Private Limited will have to deposit Rs 2,88,61,617 and M/s Ram Sundar Prasad Singh will have to deposit Rs 1,67,29,691 within a week , failing which the contract will be cancelled/terminated, they will be blacklisted and the security amount — Rs 1,50,30,903 — paid by them will be forfeited.

“Whereas, the license for operation and management of 32 Paid Parkings, Zone-l Chandigarh was allotted to you and you have taken over the physical possession of all the Paid Parking Areas on February 1, 2020. As per Clause No. 4, 6 & 36 of terms and conditions of tender document, it is clear that the licencee shall deposit one month advance of annual bid amount (as accepted) for all parking in a single lot in advance before 7th day of each month in the shape of bank draft drawn in favour of the Commissioner, Municipal Corporation, Chandigarh of every month.”,” the notice quoted.

It was also specified that in case of late payment, the licencee shall be liable to pay interest at rate of 12% per annum from the first day of the month on which the payment falls due and up to the date of actual payment, but not later than last working day of that month. And in case the payment is not made upto last working day of month, Commissioner, Municipal Corporation, Chandigarh, shall reserve the rights to cancel the licence and forfeit dues equivalent to the outstanding amount along with interest and any other financial liability towards licencee from bank guarantee.”

Clause 34 has also been quoted where it said that in case of failure in performance or default of responsibilities or breach of terms and conditions of agreement, action as per ‘Policy on Blacklisting 2009 issued vide Finance Department, Chandigarh Administration Notification No. 1927-F&PO(3)-2009/1170’ will be taken.

Why this notice

In November, the civic body’s General House had rejected the relief of Rs 2 crore that was to be given to both the parking contractors.

They were seeking remission in licence fee due to lockdown during the second wave of Covid and the free parking that was given to the employees of the civic body.

After discussions, the committee had recommended remission in licence fee due to lockdown during second Covid-19 & free parking for the employees of MCC, amounting to Rs. 1,02,50,914 for Zone-l (M/S Ram Sundar Prasad Singh), and Rs 98,64,025 for Zone-II (M/s Pashchatya Entertainment Pvt Ltd) respectively.

As per reports of the Committee, remission of 1.83% and 4.80% for Zone-l and Zone-II respectively (on account of free parking for MC employees) on monthly licence fee was to be discussed to be given from October, 2021, onwards till further orders.
However, the General House resolved that the agenda be rejected and no remission be given to them.

Reports of overcharging

The civic body has also been receiving several reports of parking contractors overcharging from people. Even as the fixed charges are Rs 12, the attendant at the Sukhna lake parking has been asking for Rs 30 from the vehicles coming to the lake, some reports said.