The Kochi Corporation would soon initiate purchase negotiations with the owner of the holding from which the Palluruthy market is functioning following the local body’s decision to own the property.
Though the outgoing council may initiate the paper works for owning the 45-cent holding of the market, the responsibility of executing the decision would fall on the shoulders of the new Corporation council, which will be sworn in a few months.
It is estimated that the local body may require around Rs.2 crore for purchasing the land besides the funds would be required for building the shopping complex there.
It was at the meeting of the Corporation council held last week that the civic authorities took the decision to initiate procedures for taking over the ownership of the land. The local body yielded to public pressure in taking the decision as a section of the traders and the locals had formed an action council for pressing the demand.
They had also organised a series of agitations including a protest march to the Corporation office and a signature campaign asking the local body to protect the more-than-a-century-old market. The cash-strapped local body will have to find additional resources, including loans for taking over the land, which was recently owned by a local trader.
Raising funds
Detailing the financial implications of the decision, Mayor Tony Chammany said the incoming civic administration could use all the resources at its disposal including the Plan fund and own funds for raising the money. If required, it can even raise loans from some financial institutions for the purpose, he said.
No rehabilitation would be required for the market project as the local body could provide shopping space to the existing traders on priority basis. However, the traders will have to pay the revised rates as fixed by the local body, said Mr. Chammany.
Land acquisition
K.J. Sohan, chairman of the Town Planning Standing Committee of the Corporation, felt that the civic body could acquire such holdings as part of its public service. Owing the market need not be considered as a liability though the decision involves financial implications. It should be construed as an effort to increase the asset base of the local body. Such assets would help improve the credit rating of the local body, he said.
If the owners refuse to part with the holding during the negotiation, the local body will have to approach the District Collector to take possession of the land through land acquisition, he said.
