Government contract
akhil dhasmana
(Querist) 12 October 2011
This query is : Resolved
Hello experts,
My query is regarding a situation in a government contract where a private owner purchases a government property.Government was enjoying a few subsidies or tax relaxations on that property so will the purchaser also get the same benefits?
If you can please provide necessary section and case law it will be of great help.
Thanks in advance
Akhil.
Sankaranarayanan
(Expert) 12 October 2011
we need more details about your query.
akhil dhasmana
(Querist) 12 October 2011
Sir ,
Take an assumption that government was owning a hotel in the state of Madhya Pradesh.It was also provided certain relaxations on electricity bills and water bills for a period of 10years.
Now because of some financial issues govt. had to sell this hotel to a private owner after 1 year.
Will that private owner also enjoy the same benefits for the remaining 9 years?
Guest
(Expert) 12 October 2011
Dear Akhil,
It is not a question of any assumption. Better come forward with the exact nature of the problem.
The title of your question and the contents of the question are quite contradictory to each other. What is the relation between Government contract and purchase of Government property by a private owner?
Further, by change of ownership of the property, in what way the concessions availed by the Government concern are concerned with any private contractor?
Sankaranarayanan
(Expert) 12 October 2011
i think it is not possible. because if any govt property to sell out for any reason to private by auction then it become private and no concession or benefit or relaxation.
Guest
(Expert) 12 October 2011
Of course, on change of status of property, laws applicable to a common man/ private business would apply. Concessions extended to the Government cannot be extended to the private buyer of the Government property.
rajeev sharma
(Expert) 12 October 2011
i would like to suggest you two things
1-pl go through the document vide which the hotel was provided concessions. If the concessions are transferable then you can lay a claim for that.
2-govt is trying to get rid of an uneconomical property.So bargain hard and get the concessions extended.
Guest
(Expert) 12 October 2011
Prabhakar ji,
Your answer "NO! NOT ALL IS A CLEAR ANSWER" is not understood, as some better answer on your part was solicited to enhance our knowledge, besides benefitting the quesrist.
Raj Kumar Makkad
(Expert) 12 October 2011
PS Dhingra ji! I think we experts should not use taunting language against each other at least in this section and even if is necessitated, we may indicate in PM to concerned person.
Raj Kumar Makkad
(Expert) 12 October 2011
So far as reply to query is concerned, the reply given by Rajeev Sharma be also treated on my behalf.
Arun Kumar Bhagat
(Expert) 12 October 2011
"NO! NOT ALL IS A CLEAR ANSWER"
I think the sentence remained incomplete. Clear answer or Proper answer ?
bhupender sharma
(Expert) 13 October 2011
The terms of the contract are to b e construed in its true sense whether it extend the same benefit after the subsequent sale as the goverment enjoys or not.
bhupender sharma
(Expert) 13 October 2011
On the subsequent ouestion asked by u the status the government has the individual may not bear the as and when the said sale is made exemption goes because it becomes purely the profit making / commercial therefore the govt. may not give u the concession as it assumes on the date unless and untill specifically provided in the sale documents.
