The Chennai Corporation has increased rental rates for shops as per market value across the city.
Traders have started appealing to the Corporation to reduce the rent, claiming that the rates have been raised nine to ten times in some areas.
A few years ago, the Corporation started increasing rental rates for its shopping complexes. Based on recommendation by the Corporation’s Revenue Department, initiatives were made to increase the rent.
Based on market value
The department sent a circular to revise the rent in all zones based on market value this year. For example, in Ward 35, Muthamizh Nagar, traders in each of the 94 shops pay a rent of ₹11 per sq ft.
As per the market value, the rent is expected to be fixed at ₹20 per sq ft. In Ward 39, Suryanarayana Street, new shops have a rental value of ₹30 per sq ft. Rent for Corporation shops in Mottai Thottam in Ward 48 has been revised from ₹7 to ₹25 per sq ft.
After every three years, the corporation revises the rent for shops.
Extending lease period
After completion of nine years, traders will get an opportunity to extend the lease by another nine years. In case the trader refuses to accept the revised rate, the shop would be auctioned.
The Chennai Corporation owns around 5,800 shops in the 15 zones of the city.