MC to cut rent of shops finding no takers in three or more auctions

The Municipal Corporation has decided to reduce the rent of shops and booths by 25% in cases where properties have failed to find takers in three or more e-auctions/auctions. The MC General House has given in-principle approval to this agenda.

As per the agenda placed in the House on Friday, various municipal properties are being put to e-auction/auction/EOI (expression of the interest) on a monthly rental basis, but owing to high rents, many of these units could not find takers despite repeated auctions.

Five attempts to rent out shops at the Sector 17/22 subway through auction have failed. Also, 39 booths at the new overbridge have failed to find takers in four auctions. Kiosks at the Japanese Garden, Sector 31, have been put to auction seven times, and those at Shivalik Garden, Manimajra, four times, but in vain.

The proposal said the Collector rates have been revised since April 1. Despite the Engineering Wing of the MC calculating the existing rent on the old collector rates, these properties couldn’t be rented out. If the present rent is revised as per the new Collector rates, then it would go further high, which may also be a reason for unsuccessful auctions.

Sometimes, properties couldn’t be rented out as a single bidder came forward.