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Hyderabad civic body getting just Rs 1,000 as rent for commercial space worth Rs 1 lakh
ET Realty  |  July 31, 2019

Nabinder Bommala Hyderabad

“On an average, people pay around Rs 5 lakhs as deposit for 450 square feet of space, but those running businesses from government-owned complexes pay around Rs 4,000 to Rs 5,000 per month as rent,” said a source.

 

Even as most people running businesses in the city shell out lakhs of rupees as rent for commercial space, a few pay less than Rs 1,000 every month.

 

For instance, 450 sq ft in Monda Market (Secunderabad) is leased out for between Rs 80,000 and Rs 1 lakh a month, but people operating businesses from properties owned by the estates wing of Greater Hyderabad Municipal Corporation (GHMC) pay less than Rs 1,000. Such is the case in most areas of the city.

 

“On an average, people pay around Rs 5 lakhs as deposit for 450 square feet of space, but those running businesses from government-owned complexes pay around Rs 4,000 to Rs 5,000 per month as rent,” said a source.

 

Interestingly, those who are renting out property don’t usually use them by themselves. They lease it out to others for hire prices.

 

“As the third party knows the building is owned by the estates wing, they pay Rs 10,000 to Rs 20,000 less than the market rate and the original leaser in turns pays GHMC Rs 4,000 to Rs Rs 5,000 based on property size,” said a source.

 

The massive difference in rent can be attributed to GHMC officials not renewing rental agreements for years. Staff crunch, political interference, people approaching court and corruption too are reasons for rental agreements not being renewed and the civic body’s properties being leased out to third parties by beneficiaries .

 

GHMC officials TOI spoke to said they were working on an action plan to fix the issue.

 

“I was appointed additional commissioner for estates wing three months back. All data pertaining to properties owned by GHMC is being prepared to take appropriate measures,” said Sandeep Kumar Jha, GHMC additional commissioner of estates wing.