Dip in HMDA rent collection, role of officials suspected

Interestingly, the HMDA has been not carrying forward its arrears to the next financial year.

Update: 2018-01-10 20:07 GMT
The HMDA has leased out a total of 235 shops and the average price fixed for each unit is Rs 34 per sqft.

Hyderabad: The Hyderabad Metropolitan Development Authority has been losing out on Rs 5 crore in rent annually on commercial complexes has leased out. Against rent dues of Rs 13 crore, the HMDA has collected Rs 8 crore during financial year 2016-17 and mere Rs 2 crore in till date during the current financial year. 

Interestingly, the HMDA has been not carrying forward its arrears to the next financial year. Sources claimed that the field staff was cornering the arrears amounts during every financial year.

The HMDA has been maintaining five commercial complexes, including Maitrivanam commercial complex (six floors), Maitrivihar commercial complex (five floors), Swarna Jayanthi commercial complex (eight floors), Tarnaka commercial complex and Hermitage office-commercial complex. The HMDA has leased out a total of 235 shops and the average price fixed for each unit is Rs 34 per sqft.

The HMDA has been collecting Rs 4.26 crore annual rent from Maitrivanam complex, Rs 4.40 crore from Swarna Jayanthi complex, Rs 0.55 crore from Ma-itrivihar complex, Rs 3.90 crore from Hermitage complex and Rs 0.88 crore from Tarnaka complex. Against a due of Rs 13.99 crore, the HMDA collected rent of Rs 8.37 crore in 2016-17, and a mere Rs 2.23 crore against Rs 14.69 crore rent due to it in current financial year.

Sources said that some HMDA officials were handin-glove with the tenants/lessee and encouraging them to evade paying rent or pay nominal amounts without issuing receipts. 

Asked about the shortfall in rent collection, a senior HMDA official said the authority has been conducting special drives to recover the arrears. He said the HMDA had recovered Rs4 crore out of a total Rs 11 crore arrears.

, and would collect the remaining amounts in special drives to be carried out later this month. He said that the HMDA will also issue notices under Revenue Recovery (RR) Act to all defaulters. 

On whether there were irregularities or connivance in collection of rent, the official said that the HMDA plans to question officials concerned about delay in recovering rents, and check any official had indulged in any inappropriate activity. He said if the officials were found guilty in the departmental inquiry, the HMDA would take stringent action against them.  

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