The Maharashtra government's transport department is paying an interest amount of over Rs 8 lakh for an outstanding rent of more than Rs 10.63 lakh for a premises it is using here.
According to a government resolution (GR) issued on November 6, the transport department had taken on rent some space in the Industrial Assurance Building near Churchgate in South Mumbai.
The rent for the said premises had not been paid between April 1998 and March 2017. The pending rent stood at Rs 10,62,931, while the interest amount on it was Rs 8,04,346, it said.
The cumulative pending amount was Rs 18,67,277, which the government has agreed to pay to the owner, the GR said.
A senior officer rued that the delay in payment of rent has led to the government incurring unnecessary cost in form of interest.
Had the rent been paid on time, the interest money could have been saved, the officer said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)