Busy with promoting the yet-to-be-occupied new modern markets, the GHMC (Greater Hyderabad Municipal Corporation) is turning a blind-eye to the already existing commercial properties under its control. The city’s civic body has leased out more than 3,000 units through 25 municipal markets and 18 shopping complexes.
However, the revenue from these properties are dwindling due to multiple reasons.
While market inspectors have an important role to play for the markets to flourish as well as to help the corporation get steady revenues, the GHMC can boast of not having a single market inspector! Presently, there is no official assigned with the duty of inspecting the markets, give feedback on its functioning, extend the lease agreements or provide suggestions on rate enhancements of the lease.
The Estate wing of the GHMC, which is the custodian of the markets and shopping complexes, is severely understaffed with just 10 employees. The Estate officials have to depend on the bill collectors who have been given additional charge to collect lease rents from the shop operators and vendors.
A closer look at the revenue collection between 2011 and 2015 shows that the GHMC could collect only 20 per cent to 50 per cent of the amount, payable to them by the occupants, every year. The officials are also clueless on how to deal with some vendors who have stopped paying lease amount, thanks to the support from local politicians. At the end of 2015, the GHMC was poorer by Rs 25 crore as the lease dues could not be collected from the lessees.
The GHMC has also not gone for lease rate enhancement since 2011, despite the agreement saying that about 11 per cent can be increased every year.
“We are working on developing the markets in the new year after which we will increase the lease rates. We will also streamline the collection process so that we get more revenues from markets and shopping complexes,” said a senior official of Estate wing of the GHMC.
