Stagnant license fees cost Chandigarh ₹12 Crore in lost revenue over a decade

Chandigarh (THe Uttam Hindu): The UT Administration has incurred a loss of approximately ₹12.33 crore due to the failure to revise the license fee for government accommodations in Chandigarh from 2012 to 2023, according to a report by the Director General of Audit (Central). The license fee should be updated every three years, but the UT has been collecting fees based on rates set in January 2009. The most recent revision occurred in July this year, while the Central Government typically raises the fee by 18 to 20% every three years.

As of March 31, 2023, it was noted that 416 government houses were vacant, with some remaining unallocated for an extended period without clear reasons. Additionally, 36 houses were under maintenance and unavailable for allotment, further contributing to revenue losses from the license fees. An audit conducted on the House Allotment Committee from 2018-19 to 2022-23 revealed that the UT Administration had not established a policy for revising license fees or followed the Central Government's revision guidelines, leading to the significant revenue shortfall.

The audit also highlighted a lack of regular surveys or inspections from 2019-20 to 2022-23. While a survey was reportedly conducted in 2018-19, no related report was provided for the audit review. This absence of oversight raises concerns about potential violations, such as subletting or unauthorized modifications to residences. Following a long gap of nearly 15 years, the UT Administration finally revised the license fee in July, increasing it by up to 50% for various categories. The new fee structure will also see a 5% annual increase starting next year. Furthermore, during the audit, it was noted that several housing units were allocated out of turn for public interest, but details for some years were not provided.