BBMP pulls plug on pay & park; contractor's dues drive decision

Bengaluru: The BBMP has temporarily suspended the pay-and-park system it introduced four years ago on several city roads.

The civic body made the decision after it failed to receive the due amount for the past three years from the contractor. Officials said the contracted agency will not be allowed to collect the parking fees until it clears all the dues.

DH had exposed the non-payment of dues collected from motorists on an hourly basis in a report headlined "3 years on, BBMP yet to get dues from agency that runs paid parking”.

Officials said they have served a notice to the agency — Central Parking System — which runs the paid parking system on eleven roads, including Cunningham Road, MG Road, Mallya Hospital Road, Residency Road, St Mark’s Road, and Church Street.

As per the original contract, the company was required to pay Rs 31.6 crore a year to the civic body by collecting parking fees from 84 roads. Almost two years after securing the contract, the agency sought a concession, citing the Covid-19 pandemic. The BBMP reduced the fees by nearly half, to Rs 28 lakh, for managing nine roads between October 2020 and May 2021. 

In December last year, the BBMP served a notice to the firm, demanding immediate payment of Rs 2.6 crore.

“It is observed that you have not paid any fees in the last four years. In this connection, a notice was issued (in November 2023), but there was no response from your end. Action will be initiated if the payment is not paid within seven days,” the notice had stated.