VIJAYAWADA: YSR Congress corporators created a ruckus at the Vijayawada Municipal Corporation (VMC) council meeting here on Tuesday against the civic body’s proposal of reducing the rentals from 33 per cent to 15 per cent for the Vastralatha (wholesale shopping complex). This reduction in rentals would cost the civic body around `11 crore.
YSRC Floor leader in VMC B Punyaseela said that the civic body cannot discuss the Vastralatha issue in the council meet as the matter is in court. “How could the estate department officials include the issue in the agenda?,” she asked. She said that there is no need to do such favour to the cloth merchants as they are earning good revenue.
Supporting the YSRC leader, BJP corporator Uttamchand Bhandari also questioned the civic body officials why corporation wants to benefit the Vastralatha Cloth Merchants’ Association by reducing the rentals. The shop owners have to pay `17.06 crore for VMC which has been pending since 2008.
The shop owners have demanded the civic body calculate the rentals as per G.O.Rt. No. 1295 Housing, Municipal Administration and Urban Development. They claimed that the pending rental amount is only `8.45 crore. They are also demanding exemption of 25 years lease period and extend their shop leases. As per G.O MS No. 120, lease period cannot be extended after 25 years. TDP corporator Muppa Venkateswara Rao also questioned the VMC officials why they are not serving notices on shop owners to vacate the complex after 25 years despite revenue loss to the corporation.
The decision has been pending on the above two issues since 2008 and the shop owners have filed cases in the court on these issues. The shop owners say that they are ready to pay 33 per cent rentals if the VMC agrees to the above demands.
Municipal commissioner G Veerapandian admitted that Vastralatha and IV Palace have to pay tax arrears to the civic body over the years. “We are levying 33 per cent rentals to Vastralatha shopkeepers though the government issued G.O. to pay 15 per cent to the civic body. Negotiations are done with shopkeepers to pay the rental arrears at 15 per cent rate this time and 33 per cent from the next time,” he said.