Southern States - Andhra Pradesh-Hyderabad   

MCH to cancel parking lot contracts

By J. S. Ifthekhar

HYDERABAD Nov. 16. The Municipal Corporation of Hyderabad is planning to terminate the contracts awarded to parking lots in the City in view of the Standing Committee's proposal to go for prepaid parking system. The Corporation has allotted 152 parking joints and collected Rs. 1.13 crores from contractors.

The Standing Committee's proposal has put the Corporation in a quandary. It may have to return the license fee for the remaining period. Under section 124 (A) of the HMC Act, the MCH is required to issue advance notices and reimburse three months proportionate amount along with interest. The whole thing comes to Rs. 30 lakhs.

The MCH is believed to have sought legal opinion from its Standing Council in this regard as it fears the contractors might approach the court challenging the decision. The MCH, it is said, is well within its right to terminate contracts, which is nothing but a license. But in the original deed there is no clause empowering the MCH to cancel the license even before expiry of the period. Even then the MCH can cancel the license by giving reasons warranting such a move and returning the license fee for the balance period.

The MCH is advised by its Standing Council to go ahead with the termination of contracts from December 31 and also to return 25 per cent of the contract amount along with interest. The Standing Committee, which originally mooted the idea, will be asked to give approval for termination of the existing parking contracts.

Under the scheme, it is proposed to charge an annual fee of Rs. 150 per vehicle for two and three-wheelers, Rs. 300 for four-wheelers and Rs. 500 for buses and contract carriages. In effect the parking ticket works out to just 41 paise per day to two and three-wheelers, 82 paise to four-wheelers and Rs. 1.36 paise to buses and contract carriages. The tickets will be valid throughout the year and can be used any number of times a day at any parking lot, the Standing Committee Chairman, M. Madhu, said.

He said the revenue earned through prepaid tickets would be used only for creating additional parking facilities for the next 10 years.

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