Shimla MC set to hike shop rent

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Shimla: The Shimla Municipal Corporation (SMC) on Monday passed a resolution authorising the Municipal Commissioner to cancel the lease deed of those, who are found sub-letting the shop or have extended the allotted area.

Apart from this, the SMC also decided, amid heated exchanges among the councilors, to do a shop-wise inspection of all 987 properties in the city, sign and allot fresh leases after this exercise was complete.

The House, chaired by Shimla Mayor Kusum Sadret, decided to hike the property tax shop-wise. The hike will range from Rs 18 sq per ft to almost seven times in cases where the SMC is getting Rs 25 per shop per year.

With the revised property tax, the corporation hopes to increase its income from the present Rs 2.5 crore to Rs 10 crore, if the SMC succeeds in implementing its resolution, revealed MC officials.

The SMC convened a special House, which was attended by the Mayor, Deputy Mayor Rakesh Sharma, councillors, MC Commissioner Pankaj Rai and other officials, to get the nod of the House to revise its rent rates for its properties.

The councillors demanded that the SMC should do shop-wise inspection and increase the rates as per location of the shop. It would be unfair to burden its shopkeepers without finding its income status.

The councillors agreed that the MC should deal with the violators who sublet the shop or alter and increase its area without the approval of the commissioner.

He should be authorised to deal with such violators by cancelling his/her lease on the spot.

Rai said they would conduct a shop-wise inspection and sign fresh lease with each MC tenants.  The hike would be property-wise and at Rs 18 per sq ft, he added.

The High Court had also given its nod to increase the rent/tax of its properties and pulled up the councillors for sabotaging the move to increase tax over the years.

The SMC had sought the permission to convene the House from the State Election Commission as the code of conduct has been force in view of the byelection to Sankti ward on January 12.

More income for civic body soon

  • The SMC house, chaired by Mayor Kusum Sadret (pic), decided to do a shop-wise inspection of all 987 properties in the city, sign and allow fresh lease
  • The House decided to hike the property tax shop-wise
  • The hike will range from Rs 18 sq per ft to almost seven times in cases where the SMC is getting paltry  Rs 25 per shop per year
  • The MC hopes to increase its income from the present Rs 2.5 cr to Rs 10 cr