Illegal occupants of shops in Chennai Corporation commercial complexes are soon likely to get lease agreements to operate in the building after a verification drive.
Several individuals who received Corporation permits to conduct business, allegedly allowed other traders to occupy shops illegally, while collecting higher charges from them.
Due to this, the civic body is reportedly losing revenue.
Officials have planned to give allotments to the occupants without permits so that they will be able to pay the Corporation directly instead of having to pay middlemen.
The Corporation has begun a survey to identify the illegal occupants in the shopping complexes in 6,239 shops in 153 locations of the city. The highest concentration of shops is found in areas such as Royapuram, Adyar, Teynampet, Kodambakkam and Anna Nagar. The Corporation council has already decided to restrict the number of shops that can be leased to an individual in shopping complexes owned by the civic body. A study by the civic body officials established that most of the shops have been cornered by a few individuals and the rent for most of them is fixed at around Rs. 30 per sq ft.
But the rent is often determined by a syndicate of individuals who reportedly prevent those who are ready to pay more from participating in auctions.
After regularisation of the lease system by issuance of new agreements to existing occupants, the civic body is planning to restrict the number of persons applying for the shopping complexes.
The lease period of the shops would be for one year, and the occupant would pay a monthly fee to the civic body.
Default on payments
For the past few months, there have been many cases of default on payments to the Chennai Corporation. Some shops have also been locked up.
Officials will identify traders who have transferred tenancy rights to others in its shopping complexes.
The traders who actually occupy the shops will be permitted to execute a lease agreement with the Corporation. The traders who transferred their tenancy rights illegally to others will lose their tenancy rights.
