Chandigarh Estate Office caused ₹9-crore loss by ignoring rent rules for leased shops: CAG

Pointing out greater irregularities withinside the running of UT management`s departments, the audit via way of means of the Comptroller and Auditor General (CAG) of India has discovered that the Estate Office didn’t observe prescribed tiers for growth in lease of leased stores, inflicting a loss of ₹9.37 crore to the authorities exchequer.

The file detailing the anomalies in monetary statements of diverse departments became submitted to UT administrator Banwarilal Purohit on March 6. As according to the file, the UT management had leased out diverse stores/SCOs/cubicles withinside the Sixties and Seventies for 5 years and the hire became renewable each 5 years with 20% growth in lease. In 1992, the lease became expanded to ₹14,000 according to month.

Eventually, in 2000, the management framed the “Leasing Out of Government Shops/Booths on Monthly Rental Basis in Chandigarh Scheme”, relevant from 1992 As according to the brand new regulations, the bottom lease must be yearly expanded via way of means of 7.5% for the primary 5 years. After the expiry of the primary 5-yr length, a sparkling hire deed for some other 5 years desires to be executed, with similarly growth of 50% withinside the base lease. T1hereafter, the lease can be more desirable via way of means of 37.5% after each next 5 years.

“UT management had leased out authorities-constructed stores/cubicles in Sector 17-E in Sixties and Seventies for a length of 5 years. The hire so granted became renewable after each 5 years with growth in lease. The lease of those SCOs became then expanded to ₹14,000 according to month in 1992. Further, lease of 5 cubicles shaped out of 3 SCOs became constant on seasoned rata basis..

This became challenged via way of means of the lessees withinside the Punjab and Haryana excessive courtroom docket and Supreme Court. The apex courtroom docket in 1999 had ordered that the lease of the stated SCOs/cubicles shall now no longer be similarly more desirable with out framing rules. As according to the guidelines of the courtroom docket, the management had framed the scheme for leasing out stores and notified it on April 19, 2000. Thereafter, rents have been to be constant with impact from March 1992 according with the scheme,” the CAG specified.

“But at the same time as accomplishing audit of the statistics of the Estate Office, it became observed that at the same time as re-assessing the lease in case of 18 stores and 5 cubicles in Sector 17-E , the workplace constant the lease opposite to commands via way of means of ignoring the prescribed tiers for growth in lease and revised the hire via way of means of at once making use of 50% growth on the bottom lease that is ₹14,000, ensuing in loss of ₹9.37 crore,” the file added.