Airport authority threatens to ban entry of CITCO employees over pending rent

CHANDIGARH: Row over the pending rent of the Chandigarh Industrial and Tourism Development Corporation (CITCO) lounge at Chandigarh International Airport Limited (CHIAL) has turned murkier as the latter has threatened to ban the entry of CITCO employees at the airport if the pending arrears of Rs 55 lakh are not paid to the authority.

Ramkrishan Upadhyay
Tribune News Service
Chandigarh, November 15

Row over the pending rent of the Chandigarh Industrial and Tourism Development Corporation (CITCO) lounge at Chandigarh International Airport Limited (CHIAL) has turned murkier as the latter has threatened to ban the entry of CITCO employees at the airport if the pending arrears of Rs 55 lakh are not paid to the authority.

Sources said in a final notice sent to CITCO, Chandigarh International Airport Limited said despite a number of reminders CITCO had failed to adhere to the timeline to deposit the amount. As a result, the Airport Authority had adjusted the security deposit of Rs 22,80,011 available with it. Now, a final notice to pay the outstanding dues of Rs 55,62,944 had been issued to CITCO.

“In case CITCO fails to pay the amount, its entry passes to the Chandigarh International Airport will be terminated. Its manpower, staff and material will not be allowed in the CHIAL. The licence can also be terminated if it fails to deposit the amount,” the notice said.

Sources said the controversy over the rent arose when CITCO closed its lounge for international travellers in May 15, 2018 after suffering huge losses. While the lounge for international travellers was closed, the other outlet for domestic travellers continued to operate. The pending rent is related to the lounge for international travellers.

CITCO opened two food outlets at the airport in December 2016 and had been paying Rs 10 lakh monthly rent for both. However, it closed one of the outlets after incurring Rs 50-lakh losses in running it for international passengers because of low business volume.

Sources in CITCO said the arrears of around Rs 14 lakh had been deposited after the final notice and officers were holding talks to settle the remaining amount which in their view disputed. They said a meeting with officials of CITCO and the Airport Authority would also be held soon.

Sources in CITCO said as both were government entities, its officers had conveyed to the Airport Authority officials that they should avoid using such harsh language in the notice.

The notice reads