SALEM: Concerns over alleged irregularities in shop allotment, revenue loss and lack of basic amenities have surfaced at the VO Chidambaranar (VOC) Market in Salem, redeveloped under the Smart City project, with traders and councillors raising questions about its management.
The VOC Market, a major hub for flowers, fruits and vegetables serving Salem, was redeveloped and inaugurated in 2023. Several issues have emerged since the reopening, related to shop allotment and market management.
After redevelopment, the entire market complex was leased to a private individual through a tender process for around Rs 8 crore. The private lessee then allocated shops without direct involvement from the corporation, causing dissatisfaction among long-standing vendors. The individual later withdrew from the tender after a year without renewing, saying he cannot manage any more.
A flower vendor, on condition of anonymity, said he operated in the market for over 20 years. "When the market was redeveloped, we were relocated temporarily. After reopening, control was handed to a private party who demanded hefty sums — running into lakhs — from traders to secure shops. Charges varied by shop size and location. Many traders who had been here for decades couldn't afford this and lost their spots," he said.
Many traders were unaware the tender was only for one year. "We assumed the allotment was permanent and paid the amounts. Now that the tender holder has withdrawn, we pay rent directly to the corporation — Rs 100 per day for open shops and Rs 200 for shuttered ones," he added.
Another trader with over 40 years of experience said long-time vendors were assured priority during allotment. "But due to high costs, many lost their spaces. Only flower vendors remain inside the market as 95% of fruit and vegetable vendors have moved out, unable to sustain their businesses here ", he said.
"Unable to pay the hefty amount demanded, I lost my place in a market where I ran my business for decades," he added. Street vendors outside the market also face challenges. A fruit seller said ground-floor shops inside were full, and traders were encouraged to take upper floors. "Few customers visit upstairs, so business is poor. We prefer selling outside despite limited sales," she said.
Vendors pointed out that only the ground floor is occupied; the two upper floors remain vacant. They also highlighted the lack of basic facilities like toilets.
The issue was also raised in the Salem Corporation Council meeting. Opposition leader N Yadhavamoorthy (AIADMK) said the private lessee failed to renew the lease in 2024 and obtained a court stay on re-tendering about six months ago. "This forced the corporation to collect rent directly, causing substantial revenue losses. Despite repeated requests, no decisive action has been taken," he said.
Commissioner Elangovan said the tender dispute is pending in court, with a hearing expected within a week. "Further action, including re-auctioning of shops, can be taken only after the court's decision", he said.
Speaking about the vacant upper floors, he said tenders were invited more than 30 times but no bids were received. "We are studying the situation and preparing a report. Based on this, we plan to revise and possibly reduce rent to encourage occupancy," he said.