Rents not revised since 2000; Action to be taken on tenants refusing to comply
Mysore/Mysuru: Desperate to rake in the moolah, the cash-strapped Mysuru City Corporation (MCC) is all set to re-issue eviction notices to tenants occupying prime market places and properties located in major markets and commercial hubs for which the rents have not been revised since 20 years.
The MCC owns 1,941 structures in prime locations in city including markets such as the century-old Devaraja Market, Vani Vilas Market and commercial buildings around K.R. Circle. As the rent being paid by the tenants is paltry and has not been hiked from several years, the MCC has decided to revise it to boost up its sagging revenue, but it has been resisted by the tenants.
Speaking to Star of Mysore, MCC Commissioner Gurudatta Hegde said that notices have already been issued to all the tenants to vacate the premises so that the shops can be re-auctioned with revised rents. “We are facing resistance from the tenants, who are refusing to vacate the shops they have been occupying since decades. We will re-issue notices and if they do not comply, we will take action as per the Karnataka Municipal Corporations Act, 1976 and auction the properties,” he said.
A meagre rent between Rs. 200 and Rs. 2,000 a month was being paid by the tenants for the prime space in commercial hubs. Most of the tenants have sub-let their outlets to other parties for higher rent and the MCC is losing out money. While the tenants are reaping rich rent per month after sub-letting the outlets, the MCC gets a paltry rent amount.
Rents for the properties have not been revised since the year 2000 and though there were grand plans of revising the rents in 2009, it did not materialise. The MCC has over 726 outlets in Devaraja Market, 304 in Vani Vilas Market, 215 outlets in Mandi Mohalla Market, 83 shops in Visvesvaraya Building in K.R. Circle, 163 shops in Makkaji Chowk Complex, 164 outlets in Dhanvantri Road building, 159 in New Scrap yard, 42 in Kalidasa Road and over 10 shops on Chamaraja Double Road.
There were over 90 outlets in Lansdowne Building that is closed now. If the rents are revised, every month, the MCC can get more than Rs. 70 lakh revenue. It is profitable if the rents are charged per square foot. Since many tenants have obtained shops more than 20 years ago, the original tenants have either passed away or their family members have handed over the shops for others for more rent.
As per rules, the MCC cannot raise the rent suddenly. It can do so only after vacating the existing tenants and after the re-auctioning process. That is the reason why the MCC is insisting on tenants vacating the shops and mulling on re-issuing the notices.
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