Urban News

The Hindu 10.08.2009

CMDA chalks out strategy to keep speculators at bay

Aloysius Xavier Lopez

— Photo: K. Pichumani

A view of the Koyembedu Wholesale Market Complex.

CHENNAI: The Chennai Metropolitan Development Authority (CMDA) has chalked out a strategy to prevent speculators from participating in the bid for allotment of unsold shops in the Koyembedu Wholesale Market Complex.

‘Shop-specific applications,’ in which merchants apply for allotment of a specific shop, will not be allowed. The new process will require ‘category-specific applications,’ said Vikram Kapur, Member Secretary, CMDA.

The applicants had to prove that they were carrying out wholesale trade for at least a year.

The market complex developed by the CMDA has 1,446 vegetable shops, 456 flower shops, 777 fruit shops and 515 additional shops. Around 2,985 shops have been allotted to wholesale merchants. At least 13 shops are under litigation.

As around 196 shops were yet to be allotted, the CMDA decided to change the old allotment process, making it more attractive for genuine wholesale merchants.

This would help it sell shops valued at more than Rs.41.7 crore.

The shops were kept vacant on account of the reluctance of merchants to apply for allotment, said Mr. Kapur.

The new process will solve the problem, an official said. If a merchant declined to accept the shop allotted, he would have to forfeit the deposit. During the previous bids, they could get back the entire deposit.

“We do not encourage speculators. We will ensure participation of genuine buyers,” said Mr. Kapur.

The Hindu - Tamil Nadu 01.08.2009

Councillors oppose move to collect money from public for UGD scheme

Staff Reporter

ERODE: Corporation Councillors from all parties, barring the ruling Dravida Munnetra Kazhagam and its ally Congress, staged a walkout opposing the move to collect money from public to execute the underground drainage (UGD) scheme.

No sooner the Council meeting began than the Councillors were up on their feet demanding the civic body to withdraw the subject tabled. Outside the Council hall, the councillors, led by AIADMK’s ‘Market’ N. Raja of Ward 17, said they opposed the move to collect deposit and tariff from the public.

The councillors wanted the Union and State governments to implement the project without any public contribution. Councillors from DMDK, MDMK and an Independent joined the walkout. The Corporation subject on the issue says it proposes to collect deposits ranging from Rs. 5,000 to Rs. 18,000 and tariff from Rs. 70 to Rs. 250 for domestic consumers and deposits ranging from Rs. 10,000 to Rs. 90,000 and tariff from Rs. 140 to Rs. 1,250 for other consumers on a sq.ft. basis.

The money the civic body collects, the resolution says, will from part of the Corporation’s Rs. 61.89 crore contribution, which is 29.58 per cent of the total project cost of Rs. 218.26 crore.

The civic body will collect the money, at least 90 per cent of it, while implementing the project to be used as part of the capital, says the terms and conditions of the agreement.

It will pay 9.5 per cent interest per annum, set quarterly and payable half-yearly, in 30 instalments for 20 years. It will not pay anything for the first five years, however.

Though the councillors, 11 of them, staged a walkout, the Council adopted the resolution after Mayor K. Kumar Murugesh gave an assurance that the Corporation would take it up with the Government while implementing the project.