A place to walk in and drive out
By Umesh Ghrera
Tribune News Service

CHANDIGARH, May 3 — Car buyers never had it so good, especially those on the lookout for second hand models. With the economy showing no sign of improvement and the price war between the key players in the car segment intensifying, it is finally the consumer who is having a small laugh.

Mr Darshan Singh of Ambala, who had come to the Sector 7 car bazaar in a bus, was hoping to drive back in Maruti 800, 1991 model, for a mere Rs 60,000. “This is the time the second hand car buyers have their catch. The prices of almost all makes have come down by one-third,” he says. “I have already taken test drives in a couple of cars and will soon decide which one to buy.”

A majority of the 25 dealers in the car bazaar which operates only on Sundays are of the view that the cut in the prices of new cars has had a direct effect on the second hand car market. Every Sunday this market is abuzz with activity when the showrooms are closed. Over 500 spruced up cars of various makes and models are lined up in the parking lot, vying for the attention of prospective buyers who, egged on by the urge for social recognition and restrained by financial constraints, flock around them.

Chiranji Lal who has a business in Solan had come hoping to buy a Fiat for less then Rs 40,000. “I can’t afford a new one and am looking for a Fiat in good condition. Cars in this market can be bought for affordable prices.”

The dealers in the market, which has been in place since 1978, play the middleman between the seller and the buyer and are responsible for the whole transaction including the transfer of papers. “We charge two per cent commission from both the parties,” says Birender Singh Bedi, a prominent dealer in the market. The dealers had to pay a weekly rent of Rs 200 to the Estate Office before it came under the Municipal Corporation. “The Corporation has now exempted us from paying the rent,” says another dealer.

According to the dealers, the Maruti800 is the most sought after brand. However, the others in demand are the Esteem, Cielo, Tata Sierra, Tata Sumo, Maruti 1000 and the Commander jeep. Whereas the Maruti 800, 1992-95 models, are priced between Rs 1 lakh and Rs 1.25 lakh, the Esteem 1996 VX model can be had for Rs 2.9 lakh, the Commander, 1990, for Rs 1.5 lakh and the Cielo 1996 for Rs 2.85 lakh, almost half the original price.

Sanjay Sharma and Ajay Sharma — both businessmen — were looking for a Zen, 1996 model. “We are willing to pay Rs 1.80 lakh provided the car is in good condition,” they said, adding that they would only buy a car with Chandigarh registration. “You can’t be sure of cars from outside the city.”

The seller is the worst affected by the slash in the prices of second hand cars. Sellers say that the resale value of cars like Esteem, Cielo etc is low. “People want to buy them cheap. Otherwise they normally prefer to buy new models,” says Harvinder Singh, a Panchkula-based businessmen.

Harvinder Singh was in the car bazaar to sell his Esteem but had not found a buyer willing to pay Rs 2 lakh. “Last Sunday also I had brought my car to the market but nobody offered the amount. I think the only way to sell it will be to further reduce the price,” he said adding, that he had booked a Mitsubishi Lancer and required money to buy it.

Car dealers point out that the drop in prices has actually caused a slump in the market. Few sellers are willing to sell their cars at throwaway prices. “People prefer to keep the cars with them rather than sell them for a mere, say Rs 60,000. Similarly, the buyers are reluctant to pay more for they feel buying a new car is a better deal than spending a fortune on a second hand car,” explains Mr Pushpinder Singh, a dealer.

Mr Birender Singh Bedi, who claims to be one of the oldest dealers in the market, is able to make around 10 deals every Sunday. He says the method of the transactions in the bazaar is foolproof. To ensure that the car being sold is not a stolen one, the dealers explain that they only deal with sellers who are either known to them personally or whose identity is established. “If the seller is from outside the city we ask them to bring somebody who can stand surety for them and after verifying all the facts we make the deal,” he says.

Buyers come from far off places like Delhi, Uttar Pradesh, Punjab, Haryana and even Rajasthan. The reason cited by the dealers is that since most of the cars sold here are from Chandigarh itself, these are generally in good condition because the roads in the city are good.

How does a buyer ensure that the car he is buying is in good condition? Bahadur Singh, a driver, who had come to the car bazaar along with his boss says, “I have come here because my boss doesn’t know much about cars. The best way is to inspect the car properly. See that its pickup is good. The engine is in proper working order and also find out whether the car has been repaired or not.

Some buyers bring mechanics with them to ensure that they are not cheated. The transactions in the market are done very fast. The buyer gets delivery of the vehicle the same day. However, the complete transfer of papers and other formalities may take up to 10 days. If the car being sold is from outside the city, then the seller is required to get a No Objection Certificate (NOC) from the registration authority concerned.

Some dealers, apart from playing the middleman, also buy cars through newspaper advertisements and then display these in the bazaar. “This involves a lot of risk since the prices of these cars are generally high and it becomes difficult to get buyers for them,” says Naveen Kumar, a dealer. “Moreover, we have to spend money on doing up the car before it can be sold,” he adds.

The dealers issue to the buyer a delivery letter on the day of the transaction which means that from that day onwards the dealer is accountable for any fraud detected thereafter.

The dealers opine that business is never good in the months of March and April. “Buyers of second hand cars include farmers and employees. Where as the former are busy with the crops, the latter have to spend money on the admission of their children during these months,” says Pushpinder Singh.

Dealers also attribute the slump in the market to the easy financing schemes available. “People prefer to buy new cars since credit is easily available,” says Mr Manjit Singh, President, Chandigarh Car Dealers’ Association. The dealers have formed this association to ensure their credibility. “The transactions in the bazaar are generally fair but whenever there is any fraud it is the dealer who suffers,” adds Mr Manjit Singh.

Sale of cut fruit unchecked
From Our Correspondent

PANCHKULA, May 3 — A number of sectors in Panchkula are witnessing the sale of cut fruits, juice, nimbu- pani, kulfis etc without any check from the authorities concerned. Sale of eatables like chana-bhaturas etc. from unhygienic surroundings also continues unabated. Utensils and glasses etc. are kept in the open and attract flies.

Almost all shopping areas have chat vendors, sugarcane juice and matka kulfi sellers who operate from unclean surroundings. Ice slabs can be seen lying in the open in different markets, wrapped in dirty gunny bags. Unhygienic environment outside a butchery at Abheypur village poses a threat to people. Other such shops at old Panchkula are running under similar conditions.

When contacted the Chief Medical Officer, Mr HC Nagpal said a notification to ban the sale of cut fruits would be issued in a week. He said he had no power to check vendors selling juices and other items. Only the sale of cut fruit is checked. “As there is no licensing authority in the district for selling the eatables, no question of cancelling them arises”, he added.

Decision on focal point causes uncertainty
From Bipin Bhardwaj
From Our Correspondent

DERA BASSI, May 3 — The decision to set up another focal point in Dera Bassi subdivision by the Punjab Government has created an atmosphere of uncertainty and insecurity among the people who had invested money to set up their industrial units at the existing focal points.

The decision to set up the new focal point in the subdivision at Jarot village, near Lalru, they feel, is unncessary as efforts should be made to maintain the existing ones. The general feeling is that the state government is only interested in gaining political mileage.

The new focal point is proposed to come up on 135 acres of land at a cost of Rs 3.5 crore. This will be the 26th focal point in the state.

A visit to the Dera Bassi focal point showed that only one tenth of the industrial units are functional, while the others have either been locked or have run-down structures bereft of machinery. Most of the units have been abandoned, while the owners of others, in view of the non-feasibility of running the units due to a variety of problems, have constructed residential accommodation on the industrial plots.

The Dera Bassi focal point, which came up in 1991-92, has a provision of 189 industrial plots in it. A quick survey showed that more than 130 industrial units have got only the boundary wall. Some owners of these units have left the construction incomplete with machinery rusting on the premises. A few have even displayed boards for sale. Nearly 25 units are under production and the rest are lying vacant.

According to sources, those interested in setting up industrial units in these focal points, are helped by the government to spend money to purchase the plots and construct sheds or buildings. They feel harassed by various authorities to get the formalities completed.

The major hurdles which hinder the smooth working of the industrial units include the Punjab Small Industrial and Export Corporation (PSIEC), District Industrial Corporation (DIC), sales tax authorities, Punjab State Electricity Board (PSEB), the Pollution Control Board, octroi and the provisions of subsidy and loans for setting up industrial units.

“They have to step into an ocean corruption,” Says Mr Saran Jagjit Singh Itten, a former Chief Technical Executive to Research and Development in Hindustan National Glass Limited.

He alleged that the investors have to pay repeated visits to various offices to get the initial formalities completed for setting up a new unit. “Even after taking bribes officials do not the work”, alleged Mr Itten. “In my own case, I have been struggling since 1994 to get my industrial unit registered with the PSIEC”.

Another industrialist, said that to strengthen their vote bank, some political leaders are misleading people, saying the scope of employment would increase by setting up such focal points.

When asked about the failure of the Dera Bassi Industrial Focal Point, Capt. Kanwaljit Singh, Finance Minister, Punjab, said the exact cause could not be ascertained. He admitted that the investors to these focal points were interested in purchasing their own land and constructing industrial units according to their will.

Dubbing Sonia foreigner 'unfortunate'
Tribune News Service

CHANDIGARH, May 3—The People's Action Front organised a panel discussion on the topic of "Could a naturalised citizen rule over India?" here today.

Speaking on the occasion, Mr Gursewa Singh Dhillon from Calgary (Canada) said to dub Ms Sonia Gandhi foreigner after her being in India for more than 30 years was nothing short of intolerance and bigotry. By this logic 13 million Indians settled abroad would be foreigners who could not attain positions in the countries where they had settled, he added.

It was unfortunate that the fundamentalists in order to gain political mileage were causing a setback to millions of those Indians who had gained top positions in foreign countries on the strength of their merit despite being in minority, he said.

Mr S.S. Bhattal said no NRI would have any incentive to invest his money in India if his credential were questioned with political motives. Whether the foreigner should be the Prime Minister or not should be left to the people's mandate, he reasoned.

Mr Subil Singh, a topper in hotel management course from Switzerland, ruled that while the foreign countries shared political power with immigrants, in India not a single NRI had been offered a seat in Parliament or the state legislatures by political parties.

Concluding the discussion, Prof Joginder Kaushal, President of the front, considered it in the bad taste to question Ms Gandhi's credentials at this stage as she was the citizen of the country according to the provisions of the Constitution.