Executive engineer reduces bank rental saying inadvertently calculated, General House to decide on confusion

Executive engineer reduces bank rental saying inadvertently calculated, General House to decide on confusion


The civic body in its General House meeting scheduled on July 29 will also be taking up the agenda of fixing rentals for the bank in the Municipal Corporation building, which the office of executive engineer had four years back stated that the rental figure was inadvertently calculated resulting in utter confusion over the rent the bank has to pay.

An agenda for allotment of space for opening of OBC branch in the building of Municipal Corporation Sector 17, Chandigarh on monthly license fee basis was placed in the F&CC meeting held on May 17, 2017.

The Engineering wing, MCC calculated rate of license fee @ Rs 566/- per sq ft. It was decided to allot space of 125.27 Sq feet or 13.92 sq yd, which is equal to 11.64 square meter at Ground floor in the MC for opening of OBC branch on the terms and conditions mentioned in letter of intent for allotment of space.

The F&CC in its said meeting accorded ex-post-facto approval for allotment of space to OBC Bank in building of MCC on monthly license fee @ Rs.70,872/- + service tax per month (license fee @ Rs.566/- per sq ft to allot space of 125.27 Sq feet).

Later when AGM, OBC Bank visited the building and was not satisfied with the space of 125.27 Sq feet allotted by MCC. He desired that 600-700 sq ft space may be provided. The Architect, MCC identified 619 square feet space available for opening of bank branch.

However, the F&CC had already approved space for bank @ 566/- per sq.ft. per month. The office with the approval of CMC issued letter of intent for allotment of space to OBC Bank of 619 Sq. ft. (approx.) @ Rs 566/- per sq.ft. per month and license fee calculated @ Rs.3,50,354/- per month plus taxes (GST) extra etc. and intimated vide letter dated July 27, 2017.

EE (R-1), MC in a communique addressed to OBC Bank vide intimated that the rates were inadvertently calculated @ Rs 566/- per Sq.Ft. by the SDE(R-1), MCC. The SDE(R-1), MCC has supplied revised calculation of rent for cabin which comes to Rs 117/- per Sq.ft. Further, the Estate Branch vide letter dated September 29, 2017 requested to the EE (R-MCC) to intimate how the monthly rent reduced from Rs. 566/- per sq. ft. to Rs 117/- sq. ft. and to ensure that the revised formula applied in revised calculation sheet is strictly as per norms. The E.E.(R-1), MCC has intimated vide Memo No.13334 dated 11.10.2017 (Annexure-A) that revised monthly rent has been reduced from Rs.566/- sq.ft. to Rs.117/- per sq.ft..

A meeting was then held under the Chairmanship of the then ACMC on April 11, 2018, wherein it was decided that monthly license fee @ Rs 279/- sq feet Per month (as per CPWD manual) instead of Rs.566/- per sq ft. Per month may be considered and the letter issued from EER-1, M.C.C may be treated as withdrawn of @ Rs.117/- per sft. Per month.

On January 12, this year, a letter has been received from the Circle Head, PNB Bank, Chandigarh (Annexure “C”), wherein they submitted that their branch is situated inside the building away from the entrance and they exclusively deal with the MCC work only. So, they should be charged an institutional rate. They further submitted that they have collected the comparative rates of three banks around the premises that is United bank of India- 45.62/- per Sq. ft. per month, Punjab & Sind Bank. 189/- per sq.ft. per month and Union Bank of India- 145/- per sq. ft. per month.

They further submitted that as long association with MCC, they want to continue at the same premises, so they request to re-consider their rent proposal @Rs.117/- per sq. feet per month.

Commissioner Municipal Corporation in November 2020 had constituted a committee to review the rates. The committee met on July 13 and recommended that the monthly rent of the CBC Bank (Now PNB) may either be Rs. 279/- (as per CPWD manual) on commercial rate, which bank is unwilling to pay from starting it may be institutional rate – which comes out to be @ Rs 31.15, the rates were calculated on the basis of Collector Rate of 2009. No further revision in Collector Rate has taken place after that. It is also mentioned in Collector Rate of 2009, that these will be applicable in future also till its revision.

It was also recommended that either it may be @ Rs 117 per square feet, which was communicated to the OBC Bank (Now PNB) earlier by Executive Engineer, Roads Division No. 1 as if commercial rate, which they are paying and willing to pay, though that letter was withdrawn in a meeting held on April 11, 2018


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