VMC Standing Panel to extend lease of shops

Vijayawada: The Standing Committee of Vijayawada Municipal Corporation accorded permission to continue the lease period of shops in various shopping complexes of the corporation.The Standing Committee meeting headed by Mayor K Sridhar on Thursday took a decision regarding the contentious issue.

Highlights:

• Though YSRCP opposed the move, corporation went ahead with its decision
• Committee gave permission for renewal of shops in Vasthralatha, Wholesale Cloth Merchants Complex, Ghantasala Complex, Bhavanipuram MC Complex, Rajiv Ghandi Wholesale Complex, new Kaleswara Rao General Market and some other complexes

The Standing Committee approved the proposals that the lease holders should renewal their lease within 45 days. The corporation will increase rent of the shops for a three-year period..The Standing Committee made it mandatory that the lease agreement need to be registered.

The corporation will also receive applications from sub-lease holders of the shops.Standing Committee gave permission for renewal of shops in Vasthralatha Wholesale Cloth Merchants Complex, Ghantasala Complex, Bhavanipuram MC Complex, Rajiv Ghandi Wholesale Complex, new Kaleswara Rao General Market and some other complexes.YSR Congress Party opposing the decision of extending lease period and demanding the panel to call tenders for fresh leases.

The issue of extending lease has been in pending for the past many years as the shop owners filed petitions in the court.Corporation has been increasing rent 331/2 for every three years for Vasthralatha shops. As per the GO No 1295 the rent should be confined up to 15 per cent. The shop owners have to pay Rs 17.06 crore for the corporation which has been in pending since 2008.

However, the shop owners has been demanding the corporation calculate the rent as per above GO and then the pending rental amount would be decreased to Rs 8.45 crore. They are also demanding exemption of 25 years lease period and extend their shop leases. As per the GO MS No. 120, lease period cannot be extended after 25 years.

A decision has been pending on above two issues from 2008 and there are cases filed by the shop owners in the court on those issues. The shop owners say that they will accord 331/2 per cent rent increase condition hereafter if the corporation agrees above demands. Finally, the Standing Committee approved for extension of leases.