Rs 300 crore loss to GHMC as shops fail to pay rents

HYDERABAD: The GHMC has lost Rs 300 crore in rents due to 99 per cent of shop owners and almost all 19 commercial complexes failing to pay annual lease, besides very small amounts collected as rent. According to sources, 2,134 shop owners have failed to pay rent out of 2,152 shops.

According to the official data, the corporation has built 21 market complexes, totalling 2,152 shops, including five vegetable markets, seven meat markets, seven mixed markets and others. According to the corporation's officials, the total annual demand was Rs 1.91 crore, based on the market value determined by the registration department in accordance with GO NO 25 (dated January 31, 2018).

Authorities informed that the auction and eviction were decentralised on November 7, 2015. The GHMC said notices had been issued to the 2,134 units that were evading rent.

The GHMC found that 716 shops in the 19 commercial complexes have not paid any rent amounts over the years. Showcause notices had been issued to deputy commissioners for failing to collect the rent. The corporation has failed to collect rents from its 37 model markets, 11 of which are located in the LB Nagar zone, six in Charminar, four in Khairatabad, five in the Serilingampally, eight in Kukatpally, and three in the Secunderabad Zone.

The model markets have 589 shops of which 104 are occupied, 60 are under agreement. Officials claimed that 100 percent occupancy is not possible because model markets are built at non-feasible locations.

According to sources, this is just the tip of the iceberg. The GHMC is still unaware of properties and lands that were leased decades ago. The corporation has been collecting rents from records stored in just one ‘almarah’ out of a total of 24. Some private individuals took advantage and used the land and properties for commercial purposes.

Officials have not made field visits to protect GHMC's properties. For example, the GHMC gave more than 18 acres for 99-year lease to build the Mahatma Gandhi Bus Station (MGBS) in 1988 and has not collected any rent. The corporation has granted permission to build toilets, hotels, and dormitories in accordance with the lease agreement.

However, in violation of the agreement, the TSRTC has sub-let commercial establishments to private individuals, ATMs and other. Sources claimed that the TSRTC owed the corporation Rs 100 crore since 2008, despite generating Rs 5 crore in monthly revenue through sub leases.

A senior GHMC official who requested anonymity told Deccan Chronicle that the corporation's revenues had been impacted by the inaction of the field staff. According to the official, most leased properties' rents were set more than 25 years ago, and some even more than five decades ago.

According to him, the corporation's demand under the old rates was `50 crore per year, and if rents were collected at the current rate the civic body could generate Rs 300 crore per year.

Headline: Where are the rents?

Rs 300 crore: Total outstanding rents

Shops

>>> 2,152 rented out by GHMC

>>> 2,134 failed to pay rent

>>> 716 shops in 19 commercial complexes not paying rent

>>> 18 acres of land GHMC leased to Mahatma Gandhi Bus Station (MGBS), has not collected rent

37: Total number of model markets

11 in LB Nagar zone

6 in Charminar Zone

4 in Khairatabad Zone

5 in Serilingampally Zone

8 in Kukatpally Zone

3 in Secunderabad Zone.

TSRTC

Rs 100 crore outstanding rents to GHMC since 2008