Cash-strapped authority issues notices to tenants to clear pending arrears, proposes 15 p.c. hike in rent
The cash-strapped Quli Qutb Shah Urban Development Authority (QQSUDA) is now eyeing its properties to generate some revenue. It has started issuing notices to its tenants to clear their rent dues even as it has proposed to increase the rents by about 15 per cent this year.
The QQSUDA owns mulgis at Charminar Unani Hospital, Quli Qutb Shah Stadium and Dhoolpet Wrestling Stadium. There are about 150 mulgis of different sizes at the three places that have been rented out for commercial purpose to the poor and unemployed people.
However, collecting the rents is said to be a major problem. A few tenants at Charminar owe up to Rs. 1 lakh to the QQSUDA. Every time the authorities try to act strict there is some political pressure, they say.
In the last three months notices have been issued for clearing the pending arrears. There are 36 big and 25 small mulgis at Quli Qutb Shah Stadium, 29 big and 47 small at Charminar Unani Hospital while Dhoolpet Wrestling Stadium has 10 big and 3 small shops.
“We are now streamlining the collection of rents and at the same time planning to increase it. Already, many tenants have paid up the dues and we hope to collect the remaining dues soon,” informed N. Raghunath Rao, secretary, QQSUDA.
The QQSUDA collects a monthly rent of about Rs. 2 lakh from its properties. At Charminar stretch it collects between Rs. 700 and Rs 1,500 a month depending upon the size of the mulgis, at Quli Qutub Shah stadium it collects Rs. 950 each from big mulgis and Rs. 500 from ten small mulgis and Rs. 375 from a few. Ten of the 13 shops at Dhoolpet pay a monthly rent of Rs. 300 each while three shops pay Rs. 500 each.
A 15 per cent increase in rent is on the anvil. “Going by the market value we collect less rents as our intention is to lease it out only to unemployed and poor people,” Mr. Rao informed.
This apart, it also rents out the Quli Qutb Shah Stadium for commercial events like marriages and functions, for which it charges a rent of Rs. 5,000 a day. It collects only Rs. 500 a day for sports events.