VASCO: In a major relief to residents leasing premises from the Mormugao Municipal Council (MMC), the council has decided to charge the first lessee a rent of Rs 12 per sq/mtr for commercial establishments and Rs 5 per sq/mtr for residential premises.
Incidentally, this rent will only be applicable to the original lessee and not to those who have sublet their premises.
At a meeting on Tuesday, the council also decided that the interest rate on outstanding rent will be levied at 12% per annum and the rent will be increased every three years depending on the inflation.
Over the years, the council kept increasing the rent and the lessees had filed a case in the High Court, which was ruled in favour of the lessees. However, the council was not ready to give into the demands of the lessees.
With no solution in sight, Vasco MLA Carlos Almeida, MMC Chairperson Fiola Rego and PDA Chairman and city Councillor Krishna Salkar sought the intervention of Urban Development Minister Francis D’Souza during his recent visit to MMC.
It is learnt that after discussing the issue, D’Souza agreed to implement the rent prevalent in 1977 and this rate was tabled during the council meeting on Tuesday.
Thanking D’Souza for solving the rent issue, Krishna Salkar has hoped that lessees will pay the outstanding amount without further delay.
Former chairpersons and Councillors Shekar Khadapkar, Nitin Chopdekar and Manish Arolkar welcomed the council’s decision and hoped that the revenue will add to the MMC treasury, which is facing a financial crunch.
As far as giving further relief to the lessees on their outstanding rent amount, Almeida suggested that the council should meet separately and discuss the outstanding rent amount in detail and try and give maximum relief to the lessees.

