CHENNAI: In what could be a blow to state ex-chequer, CMDA is yet to collect rental arrears worth Rs 3.51 crore from an allottee in Koyambedu Wholesale Market, after leasing out a godown to him on February 2002 - despite a Madras High Court order in 2017 and a two-member judicial bench ordering CMDA to collect the rental arrears.
It is learnt that SRM Jayaraman, an allottee of a godown bearing number E-88 in Periyar Market in Koyambedu Wholesale Market Complex took on lease an extent of 4,080 sqft godown. He had leased the godown for a sum of Rs 10.80 per square feet between February 6, 2002 and January 5, 2003. The godown has 11 shutters and he sublet it as 11 shops and used to collect rents but did not pay the lease amount to CMDA.
When CMDA initiated proceeding for recovery of rent in 2012, he challenged it in the High Court. However, in the petition he accepted to have sublet the godown which is illegal as per the agreement with CMDA. “As per the lease agreement, there cannot be any sub-lease,” single judge S M Subramanian observed and t e rmedthepetition misconceived.
The judge had observed irregularities were committed by the officials of the Chennai Metropolitan Development Authority and ordered the member secretary to look into the matter and initiate appropriate action against officers who did the mistake of returning the rental arrears to Annai Sathya Vegetable Traders Association, which has sublet the godown.
The judge directed CMDA and the member secretary to look into the matter and initiate appropriate action against the officers who committed the mistake of accepting rents from the third party. Interestingly, Jayaraman again moved the HC and this time the bench of Justice M Venugopal and Justice S Vaidyanathan in their order in February 2018 hit out at CMDA officials.
“Public officials, who are duty bound to maintain utmost integrity and uprightness in dealing with public properties have committed so much irregularities including allowing Jayaraman to sublet the allotted premises in favour of the third person. Further, this court has taken note of the fact that the CMDA officials have received rental arrears from a third party, who are not authorised to occupy nor any agreement was entered between them,” the judges had observed.
Since the godwon is sublet to third party, which is illegal, the court directed the CMDA member secretary to look into the entire files and if necessary, refer it to Vigilance Department of the CMDA, to conduct a detailed enquiry. While action is yet to be taken against the officials involved in the case, the effort to recover the rental arrears have been a half-hearted move till now, say traders.
It is learnt that CMDA acted against Jayaraman only after a trader complained to the officials highlighting the issue. But officials claimed a letter has been sent to the Collector five months ago by CMDA to issue instructions to revenue officials to recover the rental arrears through revenue recovery act. The district administration could not be contacted.