Tenants, who were paying just Rs. 200, will now have to pay Rs. 15,000-20,000

Mysore/Mysuru: In a major boost to the revenue of the cash-strapped Mysuru City Corporation (MCC), the civic body has implemented a long-pending revision of rents for its 1,980 shops spread across key commercial markets in the city after reaching a consensus with traders and tenants’ associations.

The revised rent structure, which comes after nearly 23 years without any increase, covers shops located at Devaraja Market, Vani Vilas Market, Visvesvaraya Building, Kalidasa Road and Mandi Mohalla Market.

For more than two decades, shop rents in several MCC-owned commercial complexes had remained unchanged, with some tenants paying as little as Rs. 200 to Rs. 400 per month, while the maximum rents ranged up to about Rs. 1,500. Shops on Sayyaji Rao Road paid a monthly rent of Rs. 5,000.

Earlier, during the 2014-15 financial year, the MCC had attempted to revise rents based on land values fixed by the Sub-Registrar’s Office. However, the proposed rates triggered stiff opposition from shopkeepers, who argued that the hike was excessive and unaffordable. Following protests, the issue remained unresolved for years.

In recent months, the MCC revived discussions with traders under a self-assessment model linked to a 5 percent property tax rebate system.

During negotiations, traders sought clarity from the MCC regarding the proposed rates, while officials remained cautious, fearing fresh protests if rates were fixed unilaterally.

Subsequently, the MCC approached the Public Works Department (PWD) to determine standardised rental rates for different markets and commercial locations. Based on the recommendations submitted by the PWD, separate rates were fixed for Devaraja Market, Visvesvaraya Building, Vani Vilas Market, Sayyaji Rao Road, Kalidasa Road and Mandi Mohalla Market.

After discussions with tenants’ associations, a consensus was finally reached, with traders requesting certain reductions in the proposed rates to make them financially viable.

Under the revised structure, shops that were earlier paying around Rs. 1,500 per month will now pay up to Rs. 15,000 and Rs. 20,000 along with 18% GST.

Rents for smaller interior shops, which earlier ranged between Rs. 750 and Rs. 1,000, have now been revised to between Rs. 5,000 and Rs. 15,000 depending on location and size. Shops that were paying as low as Rs. 200 to Rs. 300 will now pay around Rs. 1,500.

Rates rationalised

Sources said the Corporation had initially proposed rents of Rs. 264 per sq. ft. for Devaraja Market and Sayyaji Rao Road and Rs. 260 per sq. ft. for the Visvesvaraya Building based on prevailing land values. However, following objections from traders, the rates were rationalised during negotiations.

The revised agreement also addresses the issue of original allottees sub-leasing shops to third parties at significantly higher rates. To curb the practice, the MCC has now fixed a rent of Rs. 27,000 for shops found to have been sub-leased.

Rent hike welcomed

Welcoming the revised rent structure, Pailwan S. Mahadev, President of the Devaraja Market Tenants’ Association, said the traders had agreed to the hike, keeping in mind Mysuru’s development and the preservation of heritage structures such as Devaraja Market.

He said the tenants accepted the revised rates as they were comparatively reasonable and would not place an unbearable burden on traders, while at the same time helping the Corporation improve its revenue.

He also said traders were willing to contribute towards protecting the heritage and cultural identity of Mysuru’s traditional markets and acknowledged their responsibility as taxpayers in supporting the city’s development.

The revised rent structure has already begun yielding results for the MCC. With traders making payments through cheques under the new system, the Corporation is said to have collected nearly Rs. 2 crore in a single day during the initial phase of implementation, providing a significant boost to its finances.