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Tuesday, December 07, 2021

Pay Rs 4.55 cr or face termination of contract, MC chief tells parking firms

It was also specified that in case of late payment of licence fee, the licensee shall be liable to pay interest at the rate of 12% per annum from the first day of the month on which the payment falls due

Written by Hina Rohtaki | Chandigarh |
November 15, 2021 5:41:37 am
As per reports of the committee, remission of 1.83% and 4.80% for Zone-l and Zone-Il respectively on monthly licence fee was to be discussed to be given from October 2021 onwards till further orders.

Two days after the House rejected relief to the parking contractors, Chandigarh Municipal Commissioner Anindita Mitra slapped a notice on both the parking firms directing them to deposit Rs 4.55 crore, failing which their contract will be terminated.

In the notice, 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 positively, failing which the contract will be cancelled/terminated, they will be blacklisted as per policy on blacklisting 2009 and the security amount, i.e. Rs. 1,50,30,903 each, 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 01.02.2020. As per Clause No. 4, 6 & 36 of terms and conditions of tender document, it is clear that the licensee 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 said.

It was also specified that in case of late payment of licence fee, the licensee shall be liable to pay interest at the 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 up to last working day of month, Commissioner, Municipal Corporation, Chandigarh or its authorised officer shall reserve the rights to cancel the licence and forfeit dues equivalent to the outstanding dues along with interest and any other financial liability towards licensee from the 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 dated 27.02.2009 will be taken.”

WHY THIS NOTICE
Last Friday, the 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 second wave of COVID and free parking that was given to the employees of the civic body.

After discussions, the committee had recommended the remission in licence fee due to the lockdown during second Covid-19 wave & free parking for the employees of MCC, amounting to Rs 1,02,50,914 for Zone-l and Rs 98,64,025 for Zone-Il to Ram Sundar Prasad Singh (Zone-I) and M/s Pashchatya Entertainment Pvt Ltd (Zone-2) respectively.

As per reports of the committee, remission of 1.83% and 4.80% for Zone-l and Zone-Il 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.
The MC has allotted 89 (32+57) paid parking areas in Zone-l & Zone-|| license fee basis through e-tenders allotment.

Various requests were received from both the licensees to waive off the licence fee due to the lockdown during second Covid wave and not getting full possession of some sites, for providing free parking to MC officials, closure of Sukhna Lake on weekends, parking area occupied by smart bikes, closure of multiplexes, cinemas etc which was placed before the General House of the corporation in its 303rd meeting held on 29.10.2021, which was deferred.

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