MC scraps Arya Toll parking agreement

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, February 18

The local Municipal Corporation today scrapped the agreement with M/s Arya Toll Infra Ltd, which was running 25 paid parking lots and a multi-level parking in the city, after three cheques for Rs 1.5 crore (Rs 50 lakh each) issued by the firm in lieu of instalments bounced.

While the firm is yet to   decide on its next course of action, the MC has decided   to take over the parking lots and will run these from tomorrow at the same rates for now. The MC has also  decided to initiate criminal proceedings against the company and also blacklist it.

The order of the termination of the contract was issued by Tilak Raj, Additional Commissioner, MC, this evening in which it was stated that the contractor had failed to deposit the full  amount of the seventh instalment of the licence fee, amounting to Rs 3,69,50,000, which was due on December 2018. The contractor issued three cheques for Rs 50 lakh each, but these were dishonoured by banks citing insufficient funds.

Besides, the contractor has not deposited the penalty imposed by the MC from time to time for breach of the terms and conditions of the licence agreement. The MC had served a show-cause notice on the firm earlier asking it why its licence for the operation and management of the 25 paid parking lots and the multi-level parking should not be cancelled.

Tilak Raj said as the firm failed to deposit the instalment despite a notice, the MC cancelled the allotment/licence for the operation and management of 25 paid parking sites and a multi-level parking, and decided to forfeit dues equivalent to the outstanding dues along with interest from the bank guarantee as per Clause 6 of the terms and conditions of the licence agreement.

The  SDE  has been  directed to file a complaint with the SSP  regarding the cheques  getting dishonoured. The  SDE  has also  been directed to  start the  process  for blacklisting the firm as per the  policy  of the Administration. Legal  proceedings  will also be started  against the company.   

 KK  Yadav, Municipal Commissioner, said the MC would take   over the  physical possession of the 25 parking lots and the multi-level parking and run  these at the  same rates. The  MC staff will be  deputed   at  all lots.

The Mumbai-based firm had been given the contract  two years ago  for over Rs 14 crore after turning these lots smart. The company had enhanced the rates twice, first in December 2017 and later in April 2018.

Employees’ fate hangs in balance 

This is the second time that the fate of over 450 employees has become uncertain after the MC cancelled the contract. The MC had also cancelled the contract in July 2018  after the  firm defaulted on instalments and took over the parking, but it got a stay from the HC. 

Firm may move court 

Sunil Parswani, project director, said they requested the MC to deposit cheques on February 18 and  21,  but it had deposited these much earlier. He said all options, including challenging  the decision in court,  was open to them. 

Cong seeks inquiry 

Devinder  Singh  Babla, Congress councillor, said the Congress  was   against the  contract since the  beginning and  an inquiry should be conducted to expose who   were behind the  contract.