Following findings that revealed how “in connivance” with Municipal Corporation (MC), Chandigarh officials, the parking firms paid less stamp duty, causing loss to the government and “wrongful gains to themselves,” the Central Bureau of Investigation (CBI) registered a case of fraud and criminal conspiracy against “unknown public servants” as well as individuals who were then parking firm directors and proprietors.
Last year, the CBI seized the entire parking case record after bungling came to light.
“The competent authority, CBI, has decided to register a regular case under Section 120-B read with Section 420-B of the Indian Penal Code (IPC) against Ram Sunder Prasad Singh, sole proprietor of M/s Ram Sunder Prasad Singh; M/s Pashchatya Entertainment Private Limited through its director Sanjay Sharma, Vikas Pandey (authorised signatory of Pashchatya); and unknown public servants for investigation. The role of sub-registrar may also be investigated,” the CBI agents stated. They also stated that the allegations made in the complaint and substantiated during the investigation prima facie reveal the commission of crimes against these individuals.
“According to the letter of intent dated January 16, 2020 and January 23, 2020 issued to Ram Sundar Prasad Singh, the average annual amount was Rs 5,01,03,001 for the operation and management of 32 paid parking spaces in Zone-l in Chandigarh, and Rs 10,02,060 should have been paid as stamp duty in the office of the sub-registrar for executing the deed, but this was not done. Similarly, M/s Pashchatya Entertainment Pvt. Ltd should have paid Rs 11,02,222 in stamp duty, but it did not,” the findings stated.
The investigating officer stated that the stamp duty that was supposed to be paid for the execution of the lease/license deed in the office of Sub Registrar UT Chandigarh by both the parking contractors, Prasad (32 parking lots) and Paschataya Entertainment (57 parking lots) for operation and management was supposed to be Rs 21,05,282, but only 7.01 lakh was paid, resulting in a loss to the revenue authorities.
Satish Jain, then-MC’s additional commissioner, is also being investigated. In its findings, the CBI also stated that Jain signed both lease deeds in the Office of MC, Chandigarh, without first obtaining approval from the “competent authority and legal vetting on file through proper channels.” “He was well aware about the audit paras wherein the amount of stamp duty was clearly mentioned but he filed the audit para reply without any action,” the report said.
During preliminary investigations, a joint surprise check was conducted on April 5, 2023, based on “a reliable source” stating that the civic body had signed two agreements with the two firms.
According to the investigating officer’s findings, “the verification revealed that M/s Paschataya and M/s Ram Sunder in connivance with the Municipal Corporation, Chandigarh officials paid less stamp duty while executing the respective lease/license deed in the office of Sub Registrar Chandigarh causing loss to the revenue authorities and wrongful gain to themselves.”
After seizing and scrutinizing the record last year, the CBI filed a preliminary inquiry against Sunder and Sharma in September 2023.
During the investigation, the CBI discovered that the civic body had formed a committee to determine the terms and conditions of tender documents for the operation and management of 89 paid parking lots in Zones L and I. A technical committee was formed to review the technical and financial bids submitted by interested parties for the operation and management of 89 paid parking spaces in two zones of Chandigarh.
According to the MC’s engineering branch, five parties bid for the operation and management of 89 paid parking spaces, and all of the agencies’ documents were in order.
M/s Pashchatya Entertainment Pvt. Ltd. and Ram Sundar Prasad Singh were the two successful/highest/H-1 bidders in the e-tender process, according to information provided by the Municipal Corporation of Chandigarh’s engineering branch. Both contractors received letters of intent and allotment letters without signing the licence/lease deed. The license/lease deed was executed approximately 1.5 years after the issuance of the allotment letter by Monil Chauhan, Superintendent (Parking), at the direction of Satish Kumar Jain, according to the preliminary inquiry.
According to both contractors, Chauhan prepared the lease deeds and handed them over for execution. She was well aware of the lease deed amount as Superintendent Grade-ll. It was her responsibility to check the amount of average annual lease on which stamp duty would be paid in the Sub Registrar’s office,” according to the initial inquiry.
Jain told The Ultimate News that he “would not like to say anything on this matter” because he was unaware of the findings.