The Post Graduate Institute of Medical Education and Research (PGI) has revealed a revenue loss of Rs 18.02 crore due to 286 shops lying vacant during the year 2020-21. This was revealed in the audit report, which pointed out serious flaws in the tender process and rent management of the institute.
According to the report, 13 shops remained vacant due to failure of the departmental tender process. At the same time, the remaining 273 shops remained vacant without a tenant due to other reasons. The vacant shops include shops built in different parts of PGI.
According to the report, no concrete steps were taken by the PGI administration to rent out the vacant shops, being negligent.
Additional expenditure of Rs 23 lakh on tender process
According to the report, an additional Rs 23 lakh was spent by the PGI administration on the process of issuing tenders, but despite this the institute failed to fill the vacant shops. Surprisingly, when the tender process failed, neither any notice was issued to the contractors nor any alternative solution was adopted for the shops.
Rent is given for two years
PGI rents out its shops, canteens and parking spaces for a period of two years, which can be extended by one year. However, due to the negligence and lack of planning of the institute, there has been a huge loss of revenue.
Strict rules apply regarding security deposit and performance bank guarantee
There are strict rules related to security deposit and performance bank guarantee to ensure compliance with the license conditions regarding the tender of PGI parking. According to the rule, a security deposit of Rs 8 lakh will be taken from the license holders. Along with this, a performance bank guarantee of Rs 12 lakh is mandatory.
This amount will be valid for the contract period (12 months) and additional 6 months i.e. a total of 18 months in favor of PGI from any scheduled bank.
Along with this, a fine of Rs 2500 per day will be imposed for not depositing the performance bank guarantee within the stipulated time limit. If the delay exceeds 15 days, the license is liable to be cancelled.
