Hyderabad: Shopping areas built by the Nizams, earlier called mulgies, are generating revenues of Rs 7.65 crore as rent while the GHMC should be realising much more.
The 16 commercial complexes including Hari Hara Kala Bhavan, Khairatabad complex, Putli Bowli old stall, GHMC head office, Bus Depot mulgies and even Abids complex, generate rent of over Rs 64 lakh per month.
The original allottees have sub-let the premises while some shops, which belong to the government, have been sold as well.
GHMC is the main authority to take over the total carpet area of 2.59 lakh square feet.
To improve the finances of the municipal corporation, the Nizam had constructed these mulgies (commercial complexes ) at various places and let them out to vendors.
However, over time, the rents were not increased in proportion to market rates and as of date, the rent per month is Rs 64 lakh as against the market rate of Rs 1.5 crore. This way the municipality is losing Rs 10- 12 crore per annum.
“There is no maintenance of these mulgies and most of them are in a very bad shape; the original tenants sub-let the shops and these tenants too have rented them out. Thus, most shops are run by 5th or 6th tenants. In some cases, the original tenants sold the shops as well. The authority for these shops is the GHMC, and the estate office is in charge. There are a number of court cases filed by the tenants, however, these are not being contested by the GHMC. What is needed is maintenance and to ensure that rent as per market rate is collected; all court cases should be cleared with a special drive,” said source.
GHMC officials say that while several notices have been issued, tenants do not adhere to the orders nor do they vacate. The standing committee of the GHMC had earlier passed a resolution to increase the rents but no action was taken.
The total carpet area of these mulgies is around 2.59 lakh square feet and the rents being collected per month total to Rs 64 lakh or Rs 7.65 crore per annum. If the market rates are applied, rents per month from these Nizam-era muglies should be around Rs 1.5 crore per month or Rs 18 crore per annum.
