PUDUCHERRY: The Central Vigilance Commission on Wednesday directed the Puducherry Chief Vigilance Office to inquire into and initiate action on the non-collection of lease arrears to the tune of Rs 13. 5 crore for renting out a building to a club, Cercle de Pondicherry.
The commission urged the UT government to take action within a month and complete the probe within three months
This comes after a complaint by P Raghupathy of Rajiv Gandhi Human Rights Awareness Organisation. As per the complaint, the non-renewal of the lease after expiry and non-revision of rent for leased government buildings to the club resulted in the loss of revenue to the government.
The government building and an adjoining tennis court on Victor Simonel Street, near the Legislative Assembly, had been leased out to Circle De Pondicherry by the erstwhile French Government in 1938.
While the lease agreement expired on December 31, 1963, and was not renewed, the club continues to occupy the area to date, found the organisation. The lease rent was revised with effect from July 1978.
The Executive Engineer, B&R (Central), PWD on July 14, 2011, moved a proposal to the Chief Engineer, PWD that the AG (Audit), DAT Buildings, Puducherry raised an audit objection that the B&R Central Division has not renewed the lease agreement, or revised the lease rent since 1978. This has resulted in foregoing revenue resources.
In response to audit objection, the EE, B&R Central division requested the Deputy Collector (North) on October 18, 2010, to furnish the fair rent of the building, who then fixed it to Rs 10 lakh a month. He also advised them to adopt the fair rent after obtaining concurrence from the Finance Department.
"The club shell settle the rent arrears to the government and execute a fresh lease agreement within the time stipulated by Rent Controlling Authority...or else it shall vacate the premises within three months after settling dues, failing which eviction will be instituted under provisions of Public Premises (Eviction of Unauthorized Occupants) Act, 1971, on account of unauthorised occupation," he said.
In 2011, a notice was issued to the Circle De Pondicherry asking for dues of 435 lakh crore within three months from the date of the notice.
"However, years after the notice was sent, no action was taken. Especially in the memorandum of understanding signed on October 21, 1954, Circle De Pondicherry was working for cultural promotion, but on what basis can they get a liquor license and sell liquor in violation of all the provisions of this agreement?" asked Raghupathy.
The agreement does not specify that no rent shall be charged either.