In a major action against overcharging, the Market Committee has imposed a penalty of Rs 15 lakh on a private contractor for allegedly fleecing vendors and commuters by charging rates higher than the prescribed fee at the vegetable market near Jalandhar bypass in Ludhiana.
The action came after repeated complaints from vendors and commuters regarding illegal collection of parking and entry charges at the vegetable market. As per the norms, a fee of Rs 100 was to be charged from vendors but the contractor was allegedly collecting Rs 300. Car parking fee was fixed at Rs 50 but Rs 100 was being charged.
Confirming the development, Harjinder Singh, secretary, Market Committee, said: "We have conducted a checking following complaints from vendors and commuters and found that the contractor was overcharging. A penalty of Rs 15 lakh has been imposed on the contractor on Friday."
According to information, the contractor firm, LRY, was managing the parking operations and had been continuing its functioning despite repeated complaints in the past. The vendors alleged that overcharging had been going on openly, putting an additional financial burden on them.
Several vendors expressed relief over the action but demanded strict monitoring. "It was happening for a long time. We were forced to pay extra money every day. The authorities must ensure such practices should not resume," said Ramesh, a vendor.
The incident has again raised serious concerns over lack of supervision and enforcement by the authorities, allowing contractors to allegedly exploit the public.
The issue has also put the spotlight on the Municipal Corporation (MC) as the same firm is reportedly handling six major parking lots across the city. Despite complaints of overcharging in the past, the contractor has allegedly been given extensions for the past three years.
According to information, complaints regarding overcharging have been raised earlier also but no strict action was taken. The contractor continued operations, raising questions over monitoring and accountability within the civic body.
Residents and activists have demanded a thorough probe into all parking contracts handled by the firm and strict enforcement of approved rates. They have also called for display of rate lists at all parking sites to prevent overcharging and urged the civic body to float tenders for the six parking lots.
Raju, owner of the LRY company, has stated that he would relinquish the contract at midnight. He alleged that after 12 am, the Market Committee secretary would deploy staff to collect fees and may hand over the contract to another party, off the record.
He further claimed that overcharging was likely to continue under the new arrangement and urged the media to reach the spot between 6 am and 8 am, or even up to 9 am on Saturday to verify the situation and record statements from vendors regarding the alleged overcharging.