The Trichy corporation has launched an enforcement drive to collect monthly rent from commercial properties owned by the urban local body. To push traders to pay their outstanding dues, the corporation has locked and sealed 55 shops and warned 20 others at Chathiram bus stand complex to pay their dues or face similar action.
The delay in paying the rent affects the civic body’s revenue generation, hindering funding for ongoing and new infrastructure projects. Corporation generates 53.8 crore annually through the non-tax source (rent collected for local body’s properties). While Trichy has been in the top five spots among municipal corporations across the state (excluding Chennai) in collecting property tax and water charges, only 60% of the non-tax revenue was collected for the current financial year.
Officials have reported that 55 shops on the Sub-Jail Road have altogether defaulted 3.1 crore as rent over the years, leading to the lock and seal action. Although some shops have paid their accumulated monthly rent, a few are yet to pay.
“The lock and seal action has made a section of traders pay the dues immediately. We have planned to implement the same on major commercial streets,” said an official source. In Chathiram bus stand, the corporation has rented out 43 outlets each measuring 80-100sqft.
Despite the small floor size, some successful bidders took over the shops only after bidding for a hefty rent exceeding 50,000 per month, which has not been paid for the past few months.
On Saturday, the corporation sent notices to defaulters and warned of lock and seal action. “We are behind other civic bodies in collecting non-tax revenue. Such severe measures are unavoidable,” added the official.