HAVERI: The Haveri city municipal council (CMC) has constructed 26 commercial complexes in the fiscal year 2015-16 using SFC special grants. However, for the past six years, all these complexes have remained unoccupied due to the high deposit rate set by the CMC.
Despite multiple attempts to auction these spaces, local vendors have shown little interest in procuring them, leading to the waste of crores of public funds and the deterioration of these complexes.
Sources reveal that the CMC has tried to auction the commercial complexes five times, but vendors have not participated even once. The primary reason for this lack of interest is the high minimum price set by the CMC.
Both vendors and the public have strongly advocated for more reasonable and affordable rentals to ensure the successful occupancy of the complexes.
Ramesh P, a grocery vendor, expressed his disappointment over the allotment of commercial space, saying, “Some vendors who took other different commercial complexes from CMC for high rent after taking part in the open auction have now made a U-turn and have approached the court, saying they cannot pay the high rent.”
Mahesh Shettar, an aspirant for the commercial complexes, pointed out the difficulty in generating returns after investing Rs 4.6 lakh deposit, considering the additional expenses of setting up the business and interior works. He advised, “The CMC should lower the deposit amount and reduce the rent. Importantly, CMC authorities should mention the business history of the person participating in the open auction. It is better to know whether he can pay the rent in future.”
Parashuram Chalavadi, commissioner of Haveri CMC, stated: “We must work under the govt rules. We had called for an open auction according to guidelines, but vendors were not interested in participating. I will speak to the DC regarding this and decide according to the DC’s advice,” he added.
