GCDA plans stringent lease terms

To introduce new clause for greater leverage with tenants

October 24, 2017 07:49 am | Updated 07:49 am IST - KOCHI

Stung by the legal battle it was drawn into by tenants of the commercial complex in the Jawaharlal Nehru International Stadium ahead of the prestigious FIFA Under-17 World Cup, the Greater Cochin Development Authority (GCDA) is set to introduce a new clause in future lease agreements to give it leverage with tenants in similar future situations.

The GCDA has sought legal advice on incorporating the clause even though it claims that there was already a clause in the agreement empowering it to vacate shops in public interest. But it was flatly denied by tenants who argued that there was no such thing.

A section of tenants petitioned the High Court against GCDA’s notice to vacate the shops for a month as part of the security protocol for the global event. Though the court observed the decision as arbitrary, it stopped short of striking it down considering the significance of the event and instead asked the GCDA to close down the business establishments after depositing ₹25 lakh in the district treasury in a separate account to be paid as compensation to tenants.

The court also ordered the constitution of a committee consisting of the member secretary, Kerala State Legal Services Authority (KELSA); Director, Alternative Disputes Redressal Centre, High Court; and the District Collector to fix the quantum of compensation to be paid to the petitioners.

“The process of computation of the compensation will begin shortly as we received official communication from the High Court a few days back. We will have to meet all 45-odd petitioners, hear their claims and ascertain their genuineness. The process will not take long once it is started,” said K. Satyan, member secretary, KELSA.

Tenants’ stance

A number of tenants are planning to move out of the stadium complex fearing similar disruptions. “We could hardly afford such disruptions. The GCDA will find it hard to attract tenants with such unacceptable provisions,” said Titus V. George, a tenant since 1998, about his decision to shift.

Efforts are also on to rejuvenate the largely dormant Jawaharlal Nehru International Stadium Shop Alottees Association in the wake of the recent episode.

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