Chandigarh: The local Municipal Corporation on monday 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.
