Rents for office buildings in capital region to be reviewed

Many departments functioning from buildings with ‘abnormally high’ rents

December 18, 2019 11:44 pm | Updated December 19, 2019 08:44 am IST - Vijayawada

The State government has issued orders to review the rents being paid for the office buildings of various institutes other than departments in the Capital region.

Then government had issued instructions to relocate the offices of the heads of the departments to the new Capital region in and around Vijayawada and Guntur in June 2016.

The Special Chief Secretary, Transport, Roads and Buildings department, have been told to evolve a procedure after consulting the Finance Department to fix the rents. Finalising rents up to ₹20 per sq. ft. has been delegated to the head of the department while entering the rent agreement with the building owner.

Finalising of rent between ₹20 per sq. ft. and ₹30 sq. ft, in exceptional cases, was delegated to a committee comprising Special Chief Secretary to Government, R&B, Expenditure Secretary, Finance department and the HoD concerned.

The order said that many departments, Public Sector Undertakings (PSUs) and Head of the Departments were functioning from rented buildings for which the rents were “abnormally high”.

Therefore, strict instructions had been issued to all concerned, including government institutions, not to agree for rents above ₹30 sq. ft , and the area meant for parking should be excluded from the area for which the rent was calculated.

All the departments and HoDs have been directed to review their respective building rents comparing it with the market rent or the rent prescribed by R&B or the Finance Department and look for the structures that have reasonabe rents, the government said and directed the heads concerned to take necessary action immediately.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.