His quaint fabric shop, Armazens Vaglo, tucked in one corner of the Vaglo Building, is an iconic reflection of an era gone by. But Manguesh Wagle, co-owner of the building that houses Clube Nacional has derived little benefit from an association with the club made almost 50 years ago.
His case represents the plight of many other heritage building owners in Goa stuck in lease agreements made decades ago that fetch paltry rents.
While much was said and written about the recent roof collapse of Clube Nacional, Wagle chose to remain silent, until now.
Contrary to the claim made by the club (Herald Review Sept 21) that a rent of Rs 530 a month was being paid to the owners, Wagle says “for the last 50 years, we have been receiving (only) Rs 234.”
As co-owner of the Vaglo building, about 75 per cent of the club is in his property, for which he receives a paltry rent of Rs 234 every month. The remainder property that houses the club (about 25 per cent) belongs to Manohar Wagle, who receives a monthly rent of about Rs 70.
According to real estate agents, a commercial property on the coveted M G Road in Panjim would cost anywhere between Rs 150 to 200 per sq ft.
As Wagle point out, “They are paying about Rs 300 as rent for a 500 sq mt space, which makes it about 60 paise per sq mt, on M G Road, which is considered the commercial capital of Panjim!”
Though the owners have had several discussions with the club over the years for an increase in the rent, Wagle says the club management has turned down reasonable renegotiation.
“They claim they ‘weren’t even allowed to put a nail in the wall’, but we have photos to prove that they do as they please (on the premises). Their permanent décor, which includes satin fabric, is all nailed to the wall. During exhibitions and fairs, there is additional decoration, how can they do all that without nails?” he points out.
The owner says that if he was being paid this low a rent for a residential property, it might have been understandable. But for a commercial premise that brings in income, a rent this low is totally unjustifiable.
“When you sublet the premises and commercially exploit it, how can that (rent) be reasonable?” He also points out that while the club calls itself a social organisation, there is no social activity in the picture.
Reacting to the club’s appeal for help to the government and heritage conservation groups, he says that a tenant receiving such support is unheard of.
“They say they want help from heritage organisations and the government. This help should come to the owner, not the tenant,” says Wagle.
All the programmes organised by the club are running into losses, he points out, producing a copy of the institution’s audited accounts (a copy of which is with this newspaper). This, he says, was possible only because they could make up the losses through the commercial exploitation of his premises.
“According to the club’s audit report, it has fixed deposits amounting to Rs 27, 88, 180. They charge Rs 6,73,500 for hall usage, and receive an additional Rs 1,92,000 as bar rent receipts. And then they pay me Rs 234 per month as rent. Is this justice?” the livid businessman asks.
On his part, he says, he has spent Rs 46,000 for fabrication work and wooden beams to support the club’s verandah from below in 2013. Then about four years ago, he spent around Rs 50,000 to put double rafters below the verandah, again for support. Around 2012, he spent over a lakh to do the complete roofing work of the part of the building he owns, which involved changing wooden ribs, rafters and replacing broken tiles.
“Considering the present rent, it will take me 70 years to recover the amount I have spent on repairs and maintenance,” he says.
A popular venue for exhibitions, Wagle says the club sublets the hall for exhibitions and fairs for a daily rent of Rs 5,000, electricity charge is extra.
“The hall cleaning charge is around Rs 500, which is also more than the rental paid to me every month. According to audited accounts for 31.03.14, the hall cleaning charge is Rs 11,965, whereas rental paid is Rs 3,648. So it is clear that the club is paying more to the sweeper, than to the landlord,” says Wagle.
Review Bureau
