BENGALURU: The Bruhat Bengaluru Mahanagara Palike’s (BBMP) multi-level parking facility at Gandhinagar, inaugurated under the ‘Brand Bengaluru’ initiative by Deputy Chief Minister and Bengaluru Development Minister DK Shivakumar, is facing significant challenges with Prince Royal Solution Pvt Ltd, the agency managing the facility since June 21, expressing its intentions of withdrawing the same due to mounting losses.
Kumar HN, who runs the agency said that he has written at least eight representations to the BBMP Chief Commissioner, appealing to reduce rentals and wave off power bills due to low occupancy rates, which is contrary to BBMP’s promises. “We paid Rs 1 crore security deposit after securing the 5-year contract. Every four months, we are supposed to pay Rs 48 lakh as rent. So far, we have incurred a loss of Rs 64 lakh,” said Kumar.
The agency highlighted that the BBMP had initially estimated around 80 per cent occupancy at the multi-level parking facility in which 600 four-wheelers and 750 two-wheelers can be accommodated. Additionally, it had also assured that no parking would be permitted within a 500-metre radius of the parking facility, but these promises have fallen flat.
“There is hardly 10 per cent occupancy. To remove unauthorised vehicles parked in the surrounding areas, we have been paying Rs 7,500 daily for towing charges and staff, adding an additional Rs 4.5 lakh in losses. In August alone, we collected Rs 3.38 lakh but ended up paying Rs 56,000 to cover up 18 percent of GST. On the whole, we have incurred a loss of Rs 64 lakh so far, making it impossible for us to pay the salaries of 46 employees,” he added.
An official from the agency stressed that, if the Palike reduces rentals and waives off power bills (as BESCOM has threatened to cut off power supply), the facility can be run, else the agency will be forced to close down the business and take legal measures to recover its losses. Meanwhile, in an effort to offset the losses, the agency has proposed to the BBMP of running a restaurant in the basement.