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Mahbubnagar municipality hopeful of good revenues through rents
The Mahbubnagar municipality is gearing up to earn good revenue returns after 43 years, as the authorities have decided to hold auction of all the 63 shops under its control. From just a mere Rs 15-18 lakh per annum revenues earlier, now the authorities are expecting a revenue return of more than Rs 2.16 crore from the rental earnings.
The municipality was earning only Rs 15-18 lakh through rents. As the authorities have increased the rentals by three to four times, it is now expecting a revenue of Rs 2.16 crore per annum
Mahbubnagar: The Mahbubnagar municipality is gearing up to earn good revenue returns after 43 years, as the authorities have decided to hold auction of all the 63 shops under its control. From just a mere Rs 15-18 lakh per annum revenues earlier, now the authorities are expecting a revenue return of more than Rs 2.16 crore from the rental earnings.
According to municipal authorities, it was in the year 1972-74 when the first auction for these shops was conducted by the then municipal authorities. Till date, there was not much hike in the rents of the shops and the municipality was earning a meager of just Rs 15-18 lakh per annum.
The auction was not conducting due to political and legal hurdles. Moreover the lobbies of the business people and their political associates have created lot of legal issues by filing cases in the court. However, at last, the courts have cleared the way for the authorities and had directed the governing body and the municipal commissioner to conduct the auctioning process.
As part of this, the municipal authorities have conducted auction for all 24 shops in the Clock Tower region and 39 shops in the market region, and for the first time, about 477 business people participated in the auction competing for the shops.
"At last after clearing legal hurdles and overcoming political pressure, we have decided to go for the auction of all the 63 shops for the second time in 43 years. In just one day, we could earn revenue of Rs 2.4 lakh from the auction. This is a good response and very good sign for the future growth of the municipality," said Devsingh Nayak, Municipal Commissioner, Mahbubnagar.
Earlier for all the 63 shops, only Rs 15-18 lakh was earned through rents. However, now the municipal authorities have increased the rentals by three to four times and are now expecting a revenue return of Rs 2.16 crore per annum.
As the market area and the Clock Tower areas in the district are very popular business centres in the district, there is a huge competition among the business persons. However, the old renters are still pressurising the municipal authorities both politically and legally by creating hurdles in the way of auction.
However, the municipal commissioner is stern in his resolve and with the support of the governing body of the municipality; they are expecting that Palamuru municipality will have better days ahead with good revenue returns from the rents.
