Chandigarh: 48 flats near Hotel Parkview to be used as medical staff hostel

With CITCO failing to utilise a grant of ₹9.5 crore for construction of a convention centre/banquet hall by converting 48 officers’ flats at Hotel Parkview in Sector 24, the UT administration has handed over the apartments to the health department.

Currently lying abandoned, the flats (1201 to 1248) will be now be used as a hostel for nurses and doctors. The UT administration has also directed CITCO (Chandigarh Industrial and Tourism Development Corporation Limited) to refund the complete amount with interest.

In 2014, the UT administration had directed the corporation to convert the officers’ flats into a convention centre/banquet hall. It provided CITCO ₹5 crore in 2017 and another ₹4.5 crore in 2019 for the project that was envisioned to provide space for exhibitions and meetings.

However, nine years later, CITCO in April this year informed the administration that the site was not viable for the project and instead proposed to construct the centre at Sector 31.

A senior CITCO officer said the site was not viable due to its low-lying area, and the premises were already being used for hotel operations.

Despite repeated attempts, CITCO MD Purva Garg could not be contacted for comments.

In May, the office of assistant controller (finance and accounts) rents under the UT administration had issued a notice to CITCO for failing to clear rent worth ₹1.75 crore owed for 148 rooms at the hotel.

As per the agreement, CITCO has to pay annual/monthly rent for the 148 rooms, but it failed to keep its end of the bargain for the past 7-8 years. Notably, out of the total of ₹1.75 crore dues, ₹83 lakh has accrued as interest only.

Originally, the hotel, then known as Yatri Niwas, had three blocks of apartments, including 24 each in two blocks and 48 officers’ apartments in the third block.

As per the demand notice, in 1984, the UT administration gave the charge of 24 apartments (1301 to 1324) of Block A to CITCO for the establishment of Yatri Niwas to provide affordable accommodation to middle-income tourists visiting Chandigarh.

Under the lease, the rent was fixed at ₹1,000 per apartment per annum. In 2000, the administration allotted 24 more apartments (1325 to 1348) of Block B on the same terms and conditions.

Later in 2014, UT handed over the 48 officers’ apartments (1201 to 1248) as well, and a licence fee of ₹1,500 per month was to be charged for each of these apartments.

But while CITCO converted the 48 apartments, leased till 2000, into smaller rooms, the 48 officers’ apartments have been lying unoccupied, resulting in huge financial loss and gradual deterioration of infrastructure.