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.