20000410

HMC tenants

agree to 100pc increase

in rent

RECORDER REPORT

HYDERABAD: The Tenants Action Committee, Hyderabad Municipal Corporation has agreed to 100 percent increase in the rent of municipal properties subject to certain conditions.

In a communication addressed to the HMC Administrator, Action Committee President Mohammad Ramzan Arain and General Secretary Zahir Bin Zahid said that the corporation had never carried out any repairs of its rented buildings, and it had even failed to provide basic facilities of drinking water, bath rooms and electricity.

Nevertheless, they said, after holding long meeting with the tenants of various municipal markets, it had been agreed to allow 100 percent increase in rents keeping in view the locations of the municipal properties.

They pointed out that as per record of the corporation, it was collecting a rent of Rs. 5.4 million per annum but after the proposed increase, the corporation will deprive an income of over Rs. 11.2 million per annum.

The office-bearers of the action committee further said that certain municipal markets were lying abandoned whereas the corporation had constructed a few shopping centres for which the tenants were already paying high rents.

They said that if the proposals of the action committee were accepted, the corporation will not increase rents for the next five years and the increase thereafter will not be more than 10 percent.

Further more in change of tenancy, transfer fee equivalent to three months rent will be charged without any further increase in the rent.

The action committee also proposed that the corporation shall invest 20 percent of rental income on the repairs and maintenance of its property.