The State government has kickstarted the process of waiver of rent for buildings in the Greater Chennai Corporation and other urban areas during the lockdown. A decision on waiver of rent for the buildings is likely to be taken shortly.
According to officials, the Corporation has received just 20% of the rent during the lockdown period as the businesses were affected. Many local bodies in other parts of the State had not received the rent during the lockdown period. Most commercial establishments have demanded a waiver of the rent during the lockdown period. The government had announced a waiver for only two months and commercial establishments had demanded a waiver for at least one year.
The Corporation gets ₹22.5 crore of rent every year from shopping complexes in the city. More than 6,000 commercial establishments have been operating from the premises of the Corporation buildings. Over 40 commercial establishments closed during the lockdown. As many as 117 properties that were vacant in the Corporation complexes would be auctioned on October 12.
The highest rent is collected from complexes on C.P. Ramasamy Road at ₹80 per sq. ft. In addition to commercial buildings, the civic body is studying the impact of the lockdown on the collection of rent for land, buildings and tenements and lands given on lease/licence basis. The Corporation Council has announced an auction to be conducted this week for allotment of shops in Corporation shopping complex on licence basis to private individuals.
At least, 532 immovable properties of the Corporation are being managed by government departments, undertakings, corporations, boards, private associations, and individuals on lease basis as per provisions under section 75 of CCMC Act 1919 prior to 1976. The 532 land parcels had been given at different points of time for some specific period on lease/rent basis.