No participation in auction process at new textile market complex in Erode

Traders hesitant to participate in auction for shops at Erode textile market due to location and rental issues.

Despite reducing the rentals for shops at the newly constructed E.K.M. Abdul Gani Textile Market Complex in Erode city, traders are yet to participate in the auctioning process as shops are located in the second and third floors, said Erode Corporation Commissioner V. Sivakrishnamurthy on Wednesday during a council meeting chaired by Mayor S. Nagarathinam.

Ward 43 councillor J. Saburama Minhaj of the Indian National Congress (INC) alleged that shops that were not present in the old premises were allotted spaces in the new complex during the auction held on January 24. She also claimed that shops that were auctioned for higher rent were allotted to traders at a lower rent.

While one-third of the shops in the new complex were auctioned, Mr. Sivakrishnamurthy said, traders were not willing to occupy shops in the other floors. The complex was established at ₹62.60 crore and the cost needs to be recovered in three to five years. “Cost recovery for the first year is ₹14.64 crore, but, we have realised less than ₹9 crore,” he said. Shops auctioned for higher rent to the first allottee were allotted to second or third allottees, who had quoted a lesser rent if the first allottee refused to accept the allotment.

DMK councillors said at the meeting that the new vegetable market premises on R.K.V. Road had less than 250 shops and wanted to know how the 700-plus shops functioning temporarily at the V.O.C. grounds could be accommodated in the new market. They wanted the market to be shifted to the Corporation’s land at Solar Punjai Lakkapuram.

Regarding a question raised by councillors on stray dog menace in the city, the Commissioner said there were 27,000 stray dogs and the animal birth control programme has been carried out on 300 dogs so far.