The Tiruchi Corporation has decided to rent out the newly built commercial complex at Thillai Nagar to the Regional Passport Office of the Ministry of External Affairs. The Passport Office is currently functioning at another Corporation building at the Marakkadai Overhead Water Tank complex in the city.
It was with a view to increasing the revenue sources of the Corporation, that it built a shopping complex on the 7th cross in Thillai Nagar at a cost of ₹15 crore under the Smart City Mission. The three-storeyed complex has 50,275 square feet of commercial space. Except for a few finishing works, the building is almost ready for occupation.
The Corporation began the process of identifying the tenants two years ago. It came out with advertisements in newspapers, calling for interested persons to submit bids for the shops. Since no one submitted bids, it again floated tenders. Since the rent rate quoted by the bidders was below the guideline value, the Corporation chose to float tenders once again. A Tiruchi-based doctor submitted papers for using the entire complex at a monthly rent of ₹7.15 lakh. The then Commissioner cum Special Officer of the Tiruchi City Corporation passed an order on 12.06.20 to rent out the entire complex to the doctor and he was asked to pay 12 month rent as deposit in advance. Accepting the order, he too paid ₹85.86 lakh as deposit to the Corporation.
However, it was apprehended that the fixed rent, (₹15 per square foot), was ₹15 less than ₹30 per square foot of the guideline value. It was argued that it would lead to revenue loss for the Corporation. Moreover, questions were raised on the lack of transparency in leasing out the entire complex to a person. Following this, the Corporation revisited the documents and decided to cancel the lease given to the doctor. A resolution to cancel the lease was moved at the Corporation Council meeting and the council unanimously adopted in it on Tuesday.
Sources said that it had been decided to rent out the second and third floors of the complex to the Regional Passport Office at ₹5.49 lakh per month as it evinced interest to use the building. The Ministry of External Affairs had sent a formal letter, thereby agreeing to the proposal. The rent would be revised once in three years. The Ministry would pay 15% more than the basic rent. The deposit paid by the doctor would be repaid shortly.
