HDMC to recover Rs.3.38 crs rent from tenants

HUBBALLI: The Hubballi-Dharwad Municipal Corporation (HDMC) will recover Rs 3.68 crore rent from tenants running their businesses in HDMC buildings and sites since 2013. HDMC has been trying to recover rentals from 2,710 tenants. But, they haven’t responded to HDMC since their agreement is not being renewed. As per official statistiscs, Rs 4,06,90,673 is pending from 2710 users as on March 2013.

After Rs 38,27,303 was recovered till May 2016 and Rs 33,462 till June, in all Rs 38,60,765 was recovered. But the remaining Rs 3,68,29,908 is still pending.

Ajay Desai, deputy commissioner, HDMC (revenue), said HDMC has rented out 101 properties for a lease period of 999 years and 1313 properties for 1, 3, 5 and 30-year periods and some properties are in litigation. ‘The agreements of these 1313 properties ended in 2013, but the government didn’t give any directions whether the properties should be sold or the agreements renewed,” he said.

He said the state government has given a direction not to collect rental amounts after 2013, so they didn’t collect it. But they have to recover the pending rental amount, he added.

The officer said they have been making every effort to recover the rental amount. Earlier, the pending amount was Rs 5 crore, but it has reduced to Rs 3.68 crore. “We have taken serious action to recover this amount in the next two or three months,” he said.

Corporator Sudeer Saraf said the HDMC is facing a financial crisis but rentals have not been recovered for three years.

“Our officers should make an effort to recover rentals from tenants,” he said.

He said the agreement of 1313 properties ended in 2013, but HDMC sent a proposal to the government in 2012 to sell those properties as per market rate to the same tenants. But the state government hasn’t responded to the proposal. “We have sent many letters to the director of urban development, but there’s been no reply,” he said.

He said HDMC’s income sources have reduced and demanded the state government give proper directions immediately in this regard.

Credits ET Realty

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