Vastralatha issue rocks VMC council meet

Vijayawada: Members of Opposition parties opposed the proposal introduced by the commissioner of Vijayawada Municipal Corporation over the long pending issue of reducing rentals and continuing lease period for shops in Vastralatha wholesale cloth merchant complex during the council meeting here on Tuesday.

YSR Congress Party, CPM and even TDPs alliance party BJP corporators questioned the Vijayawada Municipal Corporation’s move to reduce the rentals. Some of the TDP corporators also concurred with the Opposition corporators.

As per commissioner’s proposal, Vijayawada Municipal Corporation has been increasing rent 331/2 for every three years for Vastralatha shops. As per the GO No 1295, 1-1-1980 of municipal administration and urban development department, the rent should be confined to 15 per cent.

The shop owners have to pay Rs 17.06 crore for Vijayawada Municipal Corporation which has been pending from 2008. However, the shop owners has been demanding Vijayawada Municipal Corporation to calculate the rent as per above GO and then the pending renal amount would be decreased to Rs 8.45 crore.

They are also demanding exemption of 25 years lease period and extend their shop leases. As per the GO MS No. 120, lease period cannot be extended after 25 years. Decision has been pending on above two issues since 2008 and there are cases filed by shop owners in the court on those issues.

The shop owners say that they will accord 331/2 per cent rent increase condition hereafter if the Vijayawada Municipal Corporation gives its nod for above demands.

Commissioner G Veerapandian told the council that he had negotiations with the shop owners as the GOs issued by the government and requested to pursue the issues of extending lease and calculating pending rental amount on 15 per cent increasing basis.

YSR Congress Party floor leader Punyasheela asked the commissioner how he included the subject into council agenda when the cases were pending in the courts. “It is not correct for the council to agree the proposal of officers on Vastralatha. Public auction for the shops after 25 years of lease period should be ensured”, she demanded.

TDP corporator Muppa Venkateswara Rao asked the officials why the Vijayawada Municipal Corporation did not issue notices to the traders for vacating the shops as the lease period ends afater 25 years.

BJP corporator Uttamchand Bhandari said it is unfortunate to propose to reduce rentals and accept conditions of shop owners who had crores of rupees turnover by running shops in Vastralatha Complex.

Finally, the council took a decision to send the proposal to the State government for its consideration amid the protest of YSRCP corporators.