GMSH Shop: Chandigarh terminates sole chemist's lease
Chandigarh, October 31
The UT Administration has terminated the lease of the sole chemist at the Government Multi-Speciality Hospital (GMSH), Sector 16, who had been running the shop for the past 29 years.
Inspection, notices & probe report
- Sept 8: UT Health Secy inspects GMSH, finds chemist in biz for 29 yrs
- Sep 15: UT Health Dept issues show-cause notice to chemist
- Sept 23: UT initiates fact-finding inquiry
- Sep 30: Health Secy issues second show-cause notice
- Oct 30: Panel report confirms conspiracy by ex-health officer in doubling shop size
Rs 32l monthly rental loss to admn
- Monthly rent of existing shop, for the area presently occupied (329.16 sq ft), is estimated at Rs 35L/mth
- Shop owner is currently paying Rs 2.33L/month rent, causing UT revenue loss of Rs 32L/month i.e. over Rs 1L/day
- Calculation is based on recent auction of new shop (152.3 sq ft), which was leased out at Rs 17.01L/month rent
‘Matter in court, Order illegal’
Claiming the order to be illegal, the counsel for the shop owner placed the termination order before a local court on Monday. In an application, it was argued the case was sub judice and the orders were passed against the principles of law. The applicant sought issuing of appropriate orders to stop the defendants from acting “illegally”.
The decision to terminate the lease deed has been taken on the basis of a show-cause notice issued to the shop owner on September 30.
Chandigarh Tribune had highlighted how the chemist had been running operations for the past three decades by getting subsequent renewal of contracts.
The termination letter reads: “The clause 20 of the terms and conditions of the lease deed lastly executed and registered on October 1, 2019, has been rightly invoked. The contract executed through the registered lease deed is a contingent contract and its continuity depends upon happening or not happening of specific event. The lease deed, which was executed and registered on October 1, 2019, is hereby terminated with immediate effect.” However, the order for termination of lease deed is subject to the final orders passed by a local court in the application filed by the lessee.
The damage charges for the entire period of the illegally encroachment public passage will be applied to the chemist. As per the analysis of the Health Department, the monthly rent of the existing medical shop, for the area presently occupied, should be around Rs 35 lakh per month. Hence, the administration is losing revenue of around Rs 32 lakh per month i.e. more than Rs 1 lakh per day.
Since the matter is in court, the chemist will not be dispossessed till the court makes its decision. “However, since there are no restraining orders from the court and the one-month notice period has already expired, there is no reason not to take a decision on the show-cause notice dated September 30, 2022,” said the termination notice.
The aspect that initially the chemist shop No. 6 was allotted through a bidding process for a limited specific period of two years cannot be avoided with the plea of subsequent extensions of lease deeds with fresh terms and conditions, it said.
“Since other persons who participated in the initial auction process were not aware about possibility of subsequent extension of the two-year period to more than 30 years period, one cannot say the level playing field was available. In case the possibility of such extensions was disclosed at the initial stage, it would have attracted better participation and higher bids during the auction process in 1992. The persons seeking equity must do equity whereas you are exploiting government resources at a grossly minimal amount of rent,” said the notice.
Further, the properties owned by other departments in the UT were first categorised with prior approval of the Adviser to UT Administrator, before renting these out. Thereafter, these properties were governed under this scheme. This procedure was not followed, the notice said.
