NMC slashes shop rent by 50%

Source: The Hitavada      Date: 10 Oct 2018 10:21:40


 

Special Correspondent,

Cash strapped Nagpur Municipal Corporation (NMC) has given a big relief to lease-holders of shops, Otas and open spaces situated in its market by reducing present monthly rent by 50 per cent in the meeting of Standing Committee held on Tuesday. Presently, NMC is charging rent as per ready reckoner rates and now, it will charge 50 percent less of the ready reckoner rates.


Virendra Kukreja, Standing Committee Chairman informed mediapersons that general body of NMC had formed a committee headed by former Mayor Pravin Datke to give his suggestion and recommendations for deciding rates of rent of shops, otas and open spaces of the civic body. Earlier, the rates of these shops were meager and civic body did not generate a good revenue from these shops. Therefore, Market Department had suggested to levy rent as per prevailing ready reckoner rates from these lease holders. However, the shopkeepers were agitated due to hike in their rent and around 1500-2000 shopkeepers met office bearers to reduce their rates. Datke Committee has suggested to link the rates with ready reckoner and around 50 percent rates should be levied from these shop owners, ota owners and open spaces of the NMC. This may generate Rs 30 crore annually, claimed Virendra Kukreja. Kukreja said, previously we had received only Rs 10-12 crore per annum now, it would be enhanced the income of the local body. Every year, the rates of ready reckoner will change and this will also increase their monthly rent.


Kukreja gave example of a shop situated in Dharampeth zone. The total area of the shop is 336 sq ft and earlier, shopkeeper used to pay only Rs 1949 per month. After introduction of ready reckoner rates, the rent of his shop is Rs 15,303 per month, which is unjustified. He has to pay Rs 2.17 lakh per annum to the NMC. Now, after this decision, his shop rent will be reduced to Rs 9,000 per month. This will give a big relief to the shopkeepers and they will pay the amount. It may be mentioned that NMC has total 2,875 shops and out of it 163 shops are vacant while it has 1,014 otas and 1,419 open spaces earmarked for vendors and small businesses.