No takers for Salem Corporation’s shops in Ammapet zone
The Hindu
Salem The shops owned by Salem Corporation in Ammapet zone have been remaining vacant for years. Tho
The shops owned by Salem Corporation in Ammapet zone have been remaining vacant for years. Though the Corporation reduced the rent, the response from people is very poor.
The Corporation owns hundreds of shops in the city and earns revenue by renting them out. Local people and politicians used to take the shops as the rent is less compared to other shops. There used to be tough competition to rent a shop. But after 2016, the scenario changed completely as the civic body increased the rent.
At the Old Bus Stand, there are over 125 shops, each 200 sq.ft., at a commercial complex owned by the Corporation in which almost 90% remains vacant after 2016. The Corporation invited applications from the public many times, but no one showed interest.
In June this year, the Corporation fixed the rent at ₹12,000 a shop and invited tenders in September for the 122 shops in Ammapet zone, including 110 shops in the Old Bus Stand commercial complex. But it received only five applications for two shops. In the council meeting held recently, the Corporation passed a resolution providing the shops to highest bidders (₹12,600 and ₹12,210) and decided to invite tenders again for the remaining 120 shops.
The traders, who rented the shops earlier, said they vacated the shops following an abnormal increase in rent. Before 2016, ₹20 was collected as rent per sq.ft. and they paid ₹ 4,000. Later, it increased to ₹100 per sq. ft., and following protests, the Corporation reduced the rent on various occasions. At present, they fixed ₹60 per sq.ft. as rent. If the Corporation did not reduce the rent, no one would come forward to quote a tender, they added.
The Corporation officials said they increased the rent following a government order. Not only in Salem, but across the State, the rent was increased in 2016.
Mayor A. Ramachandran said steps would be taken to reduce the rent for these shops.
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