HC passes stricture against DDA in Rachna Cinema case

New Delhi, May 25 (UNI) The Delhi High Court today passed serious strictures against the Delhi Development Authority(DDA) for not recovering misuse charges since 1983 from defunct Rachna Cinema, which accumulated at more than Rs five crore with interest till date.

Justice Swatanter Kumar directed the Vice Chariman DDA to conduct a departmental inquiry and ''fix the responsibility as to why the alleged dues which accumulated at more than Rs five crore with interest against the owners of the Rachna Cinema in the present suit was not recovered from the year 1981-83 till the date.'' Directing the Vice Chairman to place the action taken report in three months before the High Court, the Judge said, ''Take conscious decision as to who would be liable to pay the financial loss caused to the DDA for all these years. The people of the country would have to bear the burden for the inaction and negligence of the officers of the DDA.'' ''Who should be held responsible to pay these amount?'' the 20-page order said.

In the year 1983, the DDA had informed the owners that Rs 81 lakh would be levied from the owners for the misuse of the building.

But when the owners petitioned the authorities agaisnt the decision, no action was taken.

Counsel Sobha Aggrawal appearing for Aggarwals submitted that the premises was never put to any misuse.

Subsequently, the misuse charges with interest had been calculated at Rs 5.43 crore till November 25, 2005 due to negligence in the part of the DDA officials.

''The records of the DDA clearly shows that no steps were taken by the DDA to recover misuser charges for all these years,'' the Judge said.

The Court directed the owners to apporach the court after the conversion of the land from lease-hold to free-hold after the finalisation of the issue for further direction to proceed with the sale of the property.

Justice Kumar had earlier directed the management to close the hall permanently after the accountant testified that the cinema had incurred a loss of Rs 1,18,827 in six weeks between September 7 to October 20, 2005 during which it had shown the film 'Saalam Namaste'.

As directed by the court, all the partners -- both Aggarwals and Suris -- had submitted a note mentioning the procedure to convert the land to freehold from leasehold and the compensation package to 23 employees.

It is submitted before the court that the partners would have to pay Rs 1.17 crore to the Delhi Development Authority (DDA) to make it freehold from leasehold and Rs 25 lakh for compensation to the workers.

The petition sought the direction of the court for disposal of the 2000 sq mtrs of assets and sharing of the sale proceedings by the partners.

The cinema, launched as a joint venture with 12 partners, has been entangled in litigation since 1981.

UNI PAT MSJ KP1900