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This is an archive article published on February 17, 2023

UT orders GMSH-16 chemist to pay penal rent, damage charges, cost of demolition

The Chandigarh Administration's Health Department has also asked the chemist to hand over possession of shop by 10 am on February 17

Chandigarh administration, Chandigrah UT Administration, UT administration, Punjab news, Chandigarh, Indian Express, current affairsThe cost of clearing the public passage and restoration of the load bearing wall has been computed as Rs 29,259 plus applicable GST and further penalty would be charged if the possession of the shop is not handed over on February 17.
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UT orders GMSH-16 chemist to pay penal rent, damage charges, cost of demolition
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The Chandigarh Administration on Wednesday cleared a public passage that had been illegally encroached upon by a firm which was allotted chemist shop number 6 at GMSH-16. The administration also began restoration of a wall in the area.

As per details, the Chandigarh administration’s Health Department has also asked the chemist to hand over possession of shop by 10 am on February 17. Besides this, bids have also been opened for new lease of the shop. The last date to bid is March 9, with Rs 10 lakh per month being set as the base price.

On Thursday, in an order passed, the director of Health Services stated that recovery of damage charges for the illegally occupied adjacent public passage to the chemist shop number 6, recovery of cost of removal of the encroachment, including restoration of the load bearing wall, and penal rent for continuing to hold possession even after determination of the lease deed was to be paid by the lessee of the shop.

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The order further states that the allotted area of the shop as per the approved drawing of the architecture wing of Chandigarh was 151.87 square feet and hence the area of the encroached public passage was 177.29 sq ft. As per a report of the fact-finding committee, the year of encroachment was 2010 and hence damage charges will be recovered from January 1, 2010 onward. The prevailing market rent, the order further states, can be taken based on the recently auctioned chemist shop number 7 (auctioned on October 20, 2022) at Rs 11,168  per sq ft per month and levy the damage charges for the period of 157.5 months (between January 1, 2010 to February 15, 2023) at Rs 11,168 per sq ft per month and same is computed as Rs 31,18,46,018 (177.29 sq ft x Rs 11,168 x 157.5 months) plus applicable GST.

The cost of clearing the public passage and restoration of the load bearing wall has been computed as Rs 29,259 plus applicable GST and further penalty would be charged if the possession of the shop is not handed over on February 17. The order concludes that the lessee will be required to pay the damage charges, cost of demolition and penal rent within 30 days failing which, an interest at 12 per cent will also be applicable.

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