Chandigarh: The Punjab Tourism Department has taken a bold step by canceling the lease agreement for its Goa property, following widespread criticism over the remarkably low monthly rent of Rs 1 lakh. This prime eight-acre property was leased to a private hospitality firm during the tenure of former Chief Minister Charanjit Singh Channi. The decision to cancel the lease comes after Chief Minister Bhagwant Mann ordered a comprehensive review of the agreement.
The lease agreement between the Punjab Tourism Department and the private hospitality company drew attention due to the surprisingly low rent. Given the property's strategic location and its potential as a popular tourist destination, many questioned the rationale behind leasing it for such a nominal amount.
By canceling the lease pact, the Punjab government aims to rectify the situation and ensure fair market value for the state's prime property. The tourism department is currently preparing a notice to officially inform the private firm about the lease cancellation.
A senior government official explained that the relaxation of specifications for sea-facing resorts in Goa provided an opportunity for the Punjab government to terminate the lease agreement. Following the cancellation, the government intends to invite fresh tenders for leasing the property, with the hope of securing a more appropriate agreement that aligns with its market value.
The decision to cancel the lease was prompted by an investigation initiated by the Vigilance Bureau, following instructions from Chief Minister Bhagwant Mann. The investigation was launched after an IAS officer's preliminary report highlighted irregularities surrounding the lease agreement. Senior officials from the Punjab government even contacted their counterparts in the Goa administration to verify the land's price and explore the possibility of establishing a government-owned resort.
A government functionary emphasized that the lease agreement lacked post facto approval from three companies associated with the Punjab Tourism Department: Gulmohar Resorts, Satkar Holidays, and the Punjab Tourism Development Corporation. Despite the Punjab Heritage and Tourism Promotion Board leasing the property to the private bidder, the absence of required approvals renders the lease agreement invalid.
The cancellation of the lease has generated mixed reactions. While many applaud the move to rectify the irregularities and ensure a fair deal for the state, some express disappointment over the missed opportunity to generate substantial revenue for the Punjab exchequer. The nominal lease amount of Rs 1 lakh per month received heavy criticism, considering the substantial value of the property.
It is important to note that the land was originally owned by a private entity but was acquired by the Tourism Department for joint development as part of a time-share scheme more than two decades ago. The scheme aimed to establish "Holiday Homes" in collaboration with property owners across various locations in the country. However, the scheme proved financially unsustainable and remained largely dysfunctional.
The Punjab government's decision to cancel the lease agreement coincides with the revised seafront regulations in Goa, which now allow the concessionaire to utilize a larger portion of the land. However, due to the property's location within a high-tide area, its usage for construction purposes is limited. The revised regulations would have enabled the concessionaire to exploit the property more effectively, raising concerns about the adequacy of the lease agreement.
In 2013, the Punjab government valued the Goa property at Rs 54 crore, and its current market value is expected to have doubled since then. With the lease agreement valued at a mere Rs 1.13 lakh per month, suspicions were raised regarding the fairness and transparency of the deal..
The cancellation of the lease agreement serves as a reminder of the importance of due diligence and appropriate valuation in lease agreements involving government properties