Chandigarh Civic body scraps parking pact

Tribune News Service

Chandigarh, July 9

The Municipal Corporation, Chandigarh, on Monday terminated the agreement with M/s Arya Toll Infra Ltd, which was running the 25 paid parking lots and the multi-level parking in the city. While the firm has decided to move court against the decision, the MC has taken over the parking lots and will run these on the same rates for now.

Tejdeep Singh Saini, Joint Commissioner, MC, said the contractor had failed to deposit the fifth instalment of the licence fee, amounting to Rs 3,69,50,000, which was due on June 19 payable by June 25. Besides, the contractor has not deposited the penalties imposed by the MC from time to time for the breach of the terms and conditions of the licence agreement.

The MC had served a notice on the firm on July 4 asking it why its licence for the operation and management of the 25 paid parking lots and the multi-level parking in the city should not be cancelled and dues equivalent to the outstanding amount along with interest from the bank guarantee forfeited as per the terms and conditions of the agreement. However, the firm failed to deposit the instalment amount nor any written representation/reason was submitted in this regard to the MC. On Monday, as per Clause 6 of the terms and conditions of the licence agreement, the MC cancelled the allotment/licence for the operation and management of the 25 paid parking sites, the multi-level parking and forfeited dues equivalent to the outstanding amount along with interest from the bank guarantee. In case, any amount still remains due, it will be recovered from the contractor as per law.

The Joint Commissioner said the MC had taken over the physical possession of the 25 parking lots and the multi-level parking, and handed these over to the area subdivisional engineers concerned of the MC.  

Civic body meeting today

While the MC has taken over the parking lots from the firm, it has called a meeting of the Finance and the Contract Committee (F&CC) on Tuesday to decide  on the issue of  a rollback of the enhanced parking rates.

MC Commissioner KK Yadav said the issue of the rates and the future course of the action would be taken by the committee. Residents got relief  soon after the cancellation  order as they were  not  charged  for parking till the evening. However, from  Tuesday, they will have to pay the  same  amount till a decision is taken by the committee.

The Mumbai-based firm was given the contract last year in June to manage the parking lots for Rs 14 crore. The company enhanced the rates twice, first in December 2017 and later on April 1, 2018. 

Big relief for residents, says Mayor

The cancellation of the parking contract is a big relief for residents of the city, which is the result of a long struggle, said Mayor Davesh Moudgil.  

Cong takes  credit 

Pardeep Chhabra, city Congress president, has hailed the decision of the MC Commissioner to cancel the parking contract. In a statement issued here, Chhabra said it was due to a strong protest by the Congress that the authorities were forced to cancel the contract. 

He said an inquiry should also be conducted to expose the nexus between BJP leaders and the firm.