Erode Corporation allots shops to small traders in Gani market complex

Erode Corporation allocates affordable shops to roadside traders in Abdul Gani Textile Hub, reducing rent for vacant spaces.

The Erode Corporation has allotted 80 shops to roadside traders selling textile items on the third floor of the Abdul Gani Textile Hub (Gani market) at a fixed rent of ₹3,000 a month.

Under the Smart Cities Mission, the complex with 292 shops was constructed at ₹51.59 crore with ample parking space and was ready for occupancy in 2022. But, existing traders demanded priority in the allotment of shops and also wanted the rent and deposit to be reduced.

Later, the rent was reduced and shops on the first floor were allotted to them.

Despite reducing the rent for shops in the second and third floors, the traders did not participate in the auctioning process and most of the shops remained vacant. The food court in the third floor spread across 7,000 sq.ft. remained vacant as there were no takers even after 11 auctions.

On February 15 this year,  small traders selling textile products alongside the road from Panneerselvam Park Junction to Manikoondu and outside the complex submitted a petition to the Corporation Commissioner that their shops were removed by officials citing encroachments.

They said they had lost their livelihood and wanted shops to be allotted to them on the third floor of the complex on a priority basis. They also wanted the civic body to reduce the rent so that it is affordable for them. The civic body decided to use the space meant for food court as there were no takers for two years and decided to allot shops each measuring 64 sq ft to 80 traders.

A senior Corporation official told The Hindu that the monthly rent for the food court was earlier fixed at ₹72 a sq ft while the deposit was ₹10 lakh. “Since the space remains idle causing a revenue loss to the civic body, it was decided to allot 80 shops at a monthly rent of ₹3,000 a shop and deposit of ₹36,000 a shop,” the official added.