The Municipal Corporation (MC), which owns 326 commercial properties across the city, has failed to maintain lease records for several of its properties. Lease agreements for eight properties are unavailable, while many others expired years or even decades ago without updated agreements on record.
Documents obtained under the Right to Information (RTI) Act by city resident Rohit Sabharwal reveal that of the 326 commercial properties owned by the MC, 301 are rented out and 25 have been leased to educational institutions, trusts and other organisations.
The records indicate that several leases date back to the 1950s and 1960s, with some having expired decades ago, raising questions over the civic body’s property management and record-keeping.
According to the RTI documents, the MC had outstanding dues of Rs 5.93 crore from rented and leased properties as of July 31, 2020. The amount includes Rs 5.86 crore in unpaid rent and Rs 6.75 lakh in lease charges.
The documents show that lease agreements for eight of the 25 leased properties are missing from the MC’s records. These include properties leased to Arya College, Civil Lines; Kundan Vidya Mandir; Dharamik Sewa Trust; Shri Krishna Charitable Hospital; Khalsa Education College, Ghumar Mandi; Mission Trust (Sarb Rog Ka Aukhad Naam); and two properties allotted to the Police Commissioner, Ludhiana. Each of these entries carries the remark, “Agreement not available”.
Only three leased properties — two allotted to Verka Dairy (Milkfed booths) and one to Shri Dandi Swami Golok Dhaam — have lease agreements available with the MC. According to the records, these agreements remain valid.
Another set of RTI documents on older municipal lease records shows that several properties continue to be held under long-term leases granted decades ago. While some leases began as early as 1956, others were executed during the 1960s, 1980s and 1990s.
The lease in favour of Shri Amargir Singh dates back to 1956. The property leased to Bharat Dharam Prachar Mandal is valid from April 20, 1983, to June 2, 2062. Guru Harkrishan Public Pathi AP Library has a lease valid until June 5, 2092, while the Punjab Committee Martyrs Bhagat Singh Colony Welfare Association holds a lease until October 20, 2085.
However, several leases have already expired. These include the lease of Sunder Lal (Blind Well), which ended in 1994; Bhala Kalyan Home, whose lease expired on June 30, 2013; and Shri Charan Singh Bhala Memorial Home, whose lease ended in November 1994. The records do not indicate whether fresh lease agreements were executed in any of these cases.
Separate RTI documents relating to six major leased properties under MC Zone-A show that while some leases have been extended up to 2043 and 2075, the lease period has not been specified in two cases. The documents also indicate that outstanding dues relating to these properties increased from about Rs 66.09 lakh in 2022-23 to over Rs 2.40 crore as of March 31, 2023.
In another RTI reply, the Directorate of Local Government, Punjab, informed Sabharwal that 34 complaints submitted by him regarding alleged irregularities in municipal properties, lease matters, encroachments, building violations, change of land use (CLU), road works and other civic issues had been forwarded to the competent authorities for inquiry.
The department stated that the complaints had been sent to the concerned authorities for examination and necessary action, and that the complainant would be informed of the outcome after the inquiries were completed.
The complaints include allegations of non-renewal of expired municipal leases, encroachments on public land, unauthorised constructions, alleged misuse of residential properties for commercial purposes, substandard road works and demands for vigilance inquiries into various matters concerning the Municipal Corporation.
MC Joint Commissioner Tapan Bhanot said, “I have already directed officials concerned to renew agreements that have expired and trace the missing lease documents. Notices have also been issued to lessees who failed to come forward to renew their leases or pay the rent.”
