Respite for taxi stand operators in Chandigarh

Chandigarh, October 17

The MC House today reduced the interest rate from 24 per cent to 10 per cent besides offering six-month time to clear dues to defaulting private taxi stand operators.

However, they are additionally entitled to pay GST at the rate of 18% to the department concerned. Fiftyseven defaulting taxi stand operators owe the Municipal Corporation a whopping Rs 5.44 crore in ground fee. Of the amount, Rs 2.57 crore is ground rent and Rs 2.86 interest at the rate of 24%, as earlier calculated by the civic body. Raising the issue, Congress councillor Gurpreet Singh Gabi said, “24% interest rate is too high for the taxi stand operators who had faced a huge loss during the Covid-19 pandemic. The interest rate should be reduced. Instalment duration should also be increased to enable them to pay their dues.”

Mayor Anup Gupta said the interest rate on the dues would be 10%. The taxi stand operators will have to clear the dues before March 31, 2024, i.e. within six months or else they will have to pay the existing rate of interest. Those who do not pay will have to lose their taxi stands. the MC will hold an e-auction of stands from April 1 next year.

Following the recent orders of the Punjab and Haryana High Court, the civic body had proposed payment of the pending amount in instalments. The MC was asked to allow these operators to use the temporary structures in parking lots meant for drivers. The court had also ordered the unlocking of the structures, permitting the petitioners to resume their previous use until the next date of hearing.

There are 61 taxi stands under the corporation.