Multi-level parking: MC slaps Rs 249 crore claim on firm

Municipal Corporation has put a claim of Rs 249 crore on the company that was allotted the contract for the multi-level parking lot to be constructed.

Written by Khushboo Sandhu | Chandigarh | Published: March 22, 2012 3:30:26 am

The Municipal Corporation (MC) has put a claim of Rs 249 crore on the company that was allotted the contract for the multi-level parking lot to be constructed in Sector 17. Touted as the first multi-level parking lot,the project went into arbitration after the agency refused to start work till some concessions were given. During the arbitration proceedings,the civic body claimed that the company should compensate for this.

The civic body has made the claim stating that with construction not starting,the money that went into paying the consultant went waste. Also,the civic body lost face with the first of its kind project not taking off. The company,Subhash Projects and Marketing Limited (SPML),had earlier put forth a claim of Rs 49 crore on the civic body. The multi-level parking lot was proposed by the Municipal Corporation in March 2007 and approved by the Administration in December that year.

For half a decade,the project has been hitting roadblocks. The UT Architecture Department took a year and a half for approval of the plans for the parking lot after the contract was allotted.

Thereafter,it was found that electricity wires were present at the site. Another year and a half was spent on shifting of the cables. When the site was finally handed over to the Municipal Corporation in 2010,the company refused to start work till some changes were made in the contract. The firm asked for the concession period to be increased to 12 years from the seven years at which the contract was given.

It was stated that due to the delay,the cost of construction has increased. However,this was not agreed on by the MC. The project is now in arbitration. Even when there is a problem of lack of parking spaces in the sector,the site for the proposed multilevel parking lot is officially closed due to the ongoing arbitration proceedings. The visitors to the sector have managed to find a way into the parking lot whenever the other lots are full.

The construction of the multilevel parking lot or allotment of the site to a contractor for managing would have yielded much revenue for the civic body.

An official of the Municipal Corporation said,“The MC has claimed Rs 249 crore from the company. The arguments of the two sides will be heard by the arbitrators and then a final decision taken. With work not being started by the company,losses have been incurred by the civic body.”

Waiting & Waiting

March 2007 MC okays multi-level parking lot plan

Sept 2007 Nod received from UT Administration

Sept 2007 Project allotted to SPML,New Delhi

Jan 2009 UT Architecture Dept approves plan

Dec 2009 Deadline for shifting of electricity wires

Aug 2010: Electricity wires finally shifted,site handed to MC

Sept 2010: SPML demands concession period extension

Oct 2010: Deadlock between civic body and SPML

2011 Arbitration proceedings are launched

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