Oil companies agree to pay rent arrears to MMC

Municipal council is in the process of preparing a fresh agreement to be signed by the petroleum companies under revised rent

Team Herald
MARGAO: The troublesome issue of the petrol pumps paying rent to the Margao Municipal Council that has been hanging fire for many years now is apparently headed for a solution as the petroleum companies have apparently agreed in principle to pay the arrears so that a fresh agreement can be signed.
It may be recalled that four petrol pumps are operating at the old bus stand on land belonging to the Margao Municipal Council and reportedly the agreement to provide the land to the petroleum companies was signed during the Portuguese regime.
The Director of Municipal Administration in the year 2001 directed that the rent for use of municipal land be increased by 10 per cent every year. However, in a major lapse on its part, Margao Municipal Council did not do this with the petrol pumps nor did it inform them that their rent is to be revised.
In 2010, MMC finally revised the rent of the petrol pumps and after some disputes the petroleum companies paid some amount but not the entire amount of arrears and since then the revised rent has not been collected.
To take the case of two petrol pumps, both belonging to Bharat Petroleum, one was originally paying rent of Rs, 12,847 per month while the other used to pay Rs 14,209 per month. In 2001, their rent was revised to Rs 59,032/- and Rs 65,000 per month, respectively.
As per the book records of the municipal council where the 10 per cent increase in the rent since the year 2010 has not been added as on 31st March 2017, the amount payable by the two petrol pumps of Hindustan Petroleum is Rs 1,81,140 and the two petrol pumps of Bharat Petroleum is Rs 44,10,301.
MMC Chief Officer Agnelo Fernandes revealed that the petroleum companies have in principle agreed to pay the arrears and the municipal council is now in the process of preparing a fresh agreement to be signed by the petroleum companies under the revised rent.
As per the new rates the two Bharat Petroleum pumps will have to pay a monthly rent of Rs 64,935 and Rs 71,819, respectively.
Margao Municipal Council chairperson Dr Babita Prabhudessai refused to comment on this matter stating that the council will have to decide upon the matter first. “It would not be fair for me to comment before our council decided upon this matter,” she said.

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