Mumbai: After 21 years, BMC set to double rent for all shops in civic markets

Mumbai: The market department of the Brihanmumbai Municipal Corporation (BMC) has proposed an item to increase the rent of the civic markets in the upcoming Standing Committee meeting which is scheduled for Wednesday. The proposal states that for the past 21 years (1996-2916) the rent of civic markets has not been increased.

Also, between 2016-17 the BMC has spent around Rs 42.14 crore in market renovation and redevelopment. However, the revenue earned was only Rs17.7 crore. There is a huge gap between the expenditure and revenue earned, therefore, the department has proposed to increase the rent.

According to the proposal at present, vegetable shops of civic markets have been bifurcated into A, B, and K category. Shops falling under A category pay Rs 8 per sq. foot, B category shops pay Rs 7 and K category pay Rs. 6 per sq. foot rent while according to the newly proposed rents it would increase by two-fold, meaning shopkeepers selling vegetables or fruits of all categories have to pay Rs14 per sq. foot. The non-veg shopkeepers of A, B, and K category have to pay Rs. 16 per sq. foot as per the new proposal. In addition, shops that come under non-marketable (warehouse, godowns) category will have to pay Rs 20 per sq foot.

A senior civic official from market department stated, “The cost of living has increased and due to very low rent taken by the corporation in return from shopkeepers in form of rent it is eventually hampering the revenue of BMC. Also, BMC owned civic markets are providing good facilities to citizens and shopkeepers. Hence, the decision has been taken.”

Further, he revealed that if members of the Standing Committee approve the proposal then from next month itself the new rent hike would be implemented. In Mumbai, the civic corporation has around 100 markets that do business by selling different products. Proposed rent hike for all category A, B, and K –Rs. 16 per Sq. foot

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