The municipal council’s meeting witnessed heated arguments on Tuesday as many Councillors insisted on the cancellation of lease agreements entered into with the cinemas in the town.
They alleged that the representatives of the theatres had violated provisions of the lease agreements and changed the names of the theatres.
Senior Councillor S.V.V. Rajeswara Rao sought an inquiry into the issue alleging that renewal of leases was not done in accordance with the municipal laws. He said that the lease agreements made 25 years ago lapsed and they should be renewed only with the prior permission of the Council.
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‘Illegal sub-leases’
He also sought probe into the illegal sub-leases of shops and delay in collection of rents.
Some other Councillors alleged that the leaseholders of shops were taking goodwill amounts up to ₹20 lakh and allowing others to run the shops on their behalf. They expressed concern over the non-collection of rents from 231 shops out of 350 in various parts of the town.
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Municipal Chairman Prasadula Ramakrishna and Municipal Commissioner S.S. Varma said the issue of illegal sub-leases was being looked into and action would be taken against the violators of lease agreements.
Earlier, issues related to delay in construction of new roads, water crisis and other aspects discussed at length.