Municipal and panchayat rules mandate the local self government bodies to seek one month’s rent from the landlords for letting the premises for rent under the Leave and License Agreement. It is believed that thousands of business establishments are operating on rental basis in the commercial capital, but hardly a few pay rent to the civic body.
Revenue from rent also forms an important component of revenue generation especially when shops and establishments are leased out at exorbitant rents, running into thousands of rupees. The Margao Municipality does not maintain an independent register to keep a track on rent revenue from offices, flats and commercial shops and establishments.
Leave alone the private shops and establishments, sources in the know said that the situation in the municipal markets is no different either. Though the traders from Rajasthan have made their presence felt in the Municipal New Market by paying huge rent to the original owners, the municipality has not benefited much by way of the one-month rent.
Many in the civic body and outside believe that the anomalies can be rectified via an exhaustive field survey. “Unless a survey is carried out across the nook and corner of the town, the civic body will not be able to get to know the exact number of establishments operating on lease,” remarked an official.
Former MMC Chairperson Savio Coutinho said that more 70 percent of the business establishments are operating without the trade licenses. Besides, many of these establishments are operating on lease, but they do not pay the one month’s rent to the civic body. “When rent in the city ranges from Rs 40,000 to Rs one lakh, the civic body would have been richer by crores of rupees if the establishments were made to pay the one month’s rent,” Coutinho added.
