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Can’t charge 20% interest on late rent from hotel, Chandigarh civic body told, Real Estate News, ET RealEstate

Can't charge 20% interest on late rent from hotel, Chandigarh civic body told, Real Estate News, ET RealEstate
CHANDIGARH: The court of additional commissioner-cum-estate officer, municipal corporation (MC), on Friday, held that the MC cannot charge its allottees 20% penal interest on account of delayed ground rent payment and can only impose 10% interest.

The order came in the case of Lok Priya Buildwell Private Limited, which is the lessee of hotel site in Sector 35B from where five-star Hotel JW Marriot operates.

The EO directed the MC estate office to calculate the outstanding amount of ground rent at 10% according to provisions of the lease rules and intimate the company within seven days.

The firm has been directed to pay the dues within 30 days from issuance date of the demand notice failing which the office would be at liberty to initiate action.
Can't charge 20% interest on late rent from hotel, Chandigarh civic body toldThe EO order came following the directions on October 22, 2020, of the court of UT adviser which had set aside the resumption order issued to the hotel by the estate office branch of the MC.

The firm had filed a revision petition against the order passed by the UT administrator The former adviser had said, “I accept the revision petition, set aside the impugned orders passed and remand the case back to the additional commissioner, MC, for deciding afresh.”


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