The Hindu 12.04.2013
VMC, Vastralata traders lock horns
G.V.R. Subba Rao
The VMC authorities place issue before Commissioner and Director of Municipal Administration.
The Vijayawada Municipal Corporation (VMC) authorities
are firm on collecting dues from Vastralata traders. They have also
geared up to revise the rent by 33.3 per cent very soon.
The
Vastralata traders, with active support of local MLAs, have been
demanding the Corporation to sell away the shops rented to them. The
issue has become a topic for discussion in the corridors of the
Corporation. The employees were seen discussing that the MLAs were
mounting pressure on VMC higher ups to heed their suggestion. The higher
ups brought the matter to notice of Commissioner and Director of
Municipal Administration. They sought the CDMA direction in this regard,
sources say.
The problem cropped up when the VMC
authorities attempted to recover the mounting dues from shopkeepers in
Vastralata complex. The shopkeepers in the complex have to clear the
dues to the tune of Rs. 8 crore. There are 407 shops in the complex, and
most of them are into wholesale textile business.
They
are paying a rent of Rs. 20 lakh per month. As per the rules, the rent
would be enhanced by 33.3 per cent. The traders were up in arms against
the Corporation when it attempted to revise the rent in 2008. Some of
them even moved court.
The VMC did not take much interest in 2011—three years from 2008 and hike the rent.
The
issue was kept on backburner later. Cash-strapped VMC began exploring
the revenue avenues, and found that the Vastralata shops rent revision
was over due. The shopkeepers knocked the doors of MLAs saying that they
were ready to buy the shops if VMC were ready to sell away.
As
the MLAs responded positively to their plea, a tug of war is on between
shopkeepers and the VMC authorities. “Come what may we will not bow
down to the pressures. Vastralatha is a public property, and will be a
public property,” said an official.
On the other hand, the VMC has pledged the Vastralata to Hudco to avail a loan of Rs. 100 crore.
The
complex is valued at Rs. 70 crore. To avail the loan, the VMC mortgaged
IV Palace and other properties. The Corporation is yet to clear the
Hudco loan.
