‘Steep’ rent hike by Rourkela civic body irks shopkeepers

The association members also resolved to close all shops of RDA including medicine stores and hotels for 12 hours on Tuesday in protest and stage demonstration in front of the RDA office.
For representational purposes
For representational purposes

ROURKELA: Allottees of shops and commercial spaces of Rourkela Development Authority (RDA) are up in arms against the move to hike monthly licence fee.

The RDA in a meeting on September 21 adopted a resolution to enhance monthly licence fees of shops and commercial establishments with concrete ceiling roofs to Rs 10 per square feet (sq ft).

Similarly, those with asbestos roofs are required to pay monthly licence fees of Rs 9 per sq ft.

Accordingly, notices were served to the allottees on November 16 asking them to pay enhanced rent from January 2020. 

The allottees under the banner of the RDA Shop Owners’ Association on Sunday convened a meeting and demanded immediate rollback of the decision. 

The association members also resolved to close all shops of RDA including medicine stores and hotels for 12 hours on Tuesday in protest and stage demonstration in front of the RDA office.

Association president Bijay Pradhan said RDA has a total of 1610 shops and commercial spaces including 1400 across Rourkela city and rest in Sundargarh town.

He said the existing monthly rent for shops and commercial spaces having concrete roof is fixed at Rs 4.5 per sq ft, while it is Rs 3.5 per sq ft for those with asbestos roof.

“The rent hike to Rs 10 per sq ft and Rs 9 per sq ft is unjustified and whimsical. This steep rent hike would hit the allottees below their belts at a time when there is a slump in the  economy. Moreover, RDA in the past made no efforts to carry out repair and maintenance works of the shops,” he added.

The members added that if RDA fails to heed to their demand, they will launch an agitation.

They also pointed out that RDA guidelines prevent sell of its shops or commercial establishments by any allottee.

But, contradicting the guidelines, the RDA itself has floated advertisement and issued notices informing that for transfer of the units, the RDA would charge Rs 2000 and Rs 500 per sq ft as security money and processing fee respectively with monthly rent of Rs 8 per sq ft.

Some shopkeepers claimed that RDA has not renewed agreement of many shops existing for 20 to 40 years, but is now demanding unjustified amount calculated over 11 months for per renewal with 10 per cent interest. 

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