No action on vacant properties, arrear recovery
AMID A DEFICIT OF ₹16 CR IN ITS BUDGET, MC HAD STALLED ALL NEW PROJECTS
CHANDIGARH:TRYING to rise above its financial crisis, the municipal corporation is planning fresh taxes even as its commercial properties worth more than ₹208 crore are lying vacant.
Besides losing out on this major chunk of revenue, the civic body also has not recovered arrears worth more than ₹9.2 crore against its over 1,000 properties allotted on freehold, leasehold and monthly rent basis.
This, when the corporation is facing a deficit of ₹16 crore in its budget. Against its total liabilities of ₹597 crore, MC has only ₹581 crore, which comprises projected revenue receipts of just ₹241 crore, while the remaining funds will come through grants.
The figures of revenue loss against MC’S properties form a part of a report submitted by various MC departments to a panel set up by the mayor to suggest ways to improve its financial condition. The panel had further asked MC departments to submit reports detailing their financial position, steps taken to improve it and recommendations.
200 SITES UNSOLD
The MC estate branch in its report states that over 200 commercial properties under its purview are lying vacant. Several attempts to auction these properties had failed to bear fruit.
For instance, it tried to sell off 105 booths at Mauli Jagran six times, but failed. Similarly, a 24-acre site for a specialty hospital with a reserve price of ₹81 crore was offered twice for sale, but found no takers. As many as 51 commercial sites in Sector 17 are also lying vacant as two auctions went in vain.
MC officials blame the mess on UT administration’s reluctance to allow sale of these properties on freehold basis. “Freehold properties will find more takers. But the administration is adamant,” said a senior MC official, wishing not to be named.
“Besides, several arrear cases are in court. The reports will be studied to find a way out,” the official added.