The Indian Express 10.09.2013
Paid parking lots: MC to reduce reserve price
month, the Municipal Corporation has decided to reduce the reserve price
by 10 per cent and re-auction the lots. The auction held earlier had
flopped after the civic body levied 12.36 per cent service tax.
The decision was taken at a meeting of the Finance and Contract Committee on Monday.
A total of five paid parking lots were to go under the hammer on
August 13. As per directions of the Central Excise and Taxation
Department, 12.36 per cent service tax was to be imposed on the
contractors who bid for the parking lots. Following this, the
contractors refused to bid. They demanded a decrease in the reserve
price or increase in the parking fees.
As the issue was put before the committee, the members opposed
any hike in the parking fees. It was then decided that the reserve price
be reduced and the parking lots be re-auctioned. The parking lots that
were to be auctioned were present in sectors 17 and 22.
In another decision, the members of F&CC decided not to
convert the free parking lots in Sector 22 into paid parking lots as had
been proposed. The proposal was to convert four parking lots in Sector
22 and one in Sector 17 into paid parking. This was opposed by the
members who stated that there was a need for streamlining the existing
paid parking lots instead of converting the free ones into paid ones.
It was decided that the parking lot behind Sagar Ratna restaurant
in Sector 17 would be converted into paid parking lot. Earlier, a
multilevel parking lot had been proposed at the site. However, the
proposal hit several roadblocks. The agency that was awarded the
contract went into arbitration and the MC was then directed to pay a
heavy penalty to them. Meanwhile, the area that was being used as a free
parking lot till now would be converted into a paid parking lot.
The Sahib Singh parking lot in Sector 17 that is to be made fully
automated would have a reserve price of Rs 29.22 lakh. It was decided
that the area of the Empire Store parking lot would be decreased and
reserve price fixed at Rs 12.79 lakh. This would also be fully
automated. In the remaining area, vehicles of MC officials would be
parked. This is being done due to the construction at the MC building.
A contractor who had earlier given a notice for termination of
the contract of a parking lot in Sector 22 has been allowed to withdraw
the notice and continue for the remaining period of the contract.
