Karnataka: Gadag civic body draws flak for renting out shops at throwaway prices

GADAG: The Gadag-Betgeri City Municipal Council’s (GBCMC) silence on auctioning of its 289 shops has created many doubts among residents. It’s said that it has rented out shops of about 250 sq ft size, at Rs 3 per day, but it’s collecting a minimum of Rs 10 per day from street vendors. There are allegations that reservation of 18% for SC/STs in not followed in this allotment.
V R Govindgoudar, founder president, Young India, Gadag, told TOI that some shops were leased out to only cloth sellers in 1922 for 17 years, with the intention of encouraging the textile business at a place.“Then GBCMC kept increasing their rent by 5%-30%. It has not auctioned these shops from 2017, and this silence has deprived SC/STs and other aspiring entrepreneurs of business opportunities. The GBCMC is also facing a huge loss in revenue. The irony is that shops which were given for a particular business, are now being used for other businesses. Such violations can’t happen without the involvement of officials,” he alleged.
Ravi Karabasannavar, Mahesh Mutagar, Khajasab Sonnad, Malik Madliwale and other activists said that they are agitating for 3 months, but officials have not taken this issue seriously. “As per the market value, the rent for a shop of about 250 sq ft at Gadag Market is Rs 25,000-Rs 30,000 per month, whereas GBCMC is collecting only Rs 1,100 to 1,300 per annum from its tenants at stalls. It collects Rs 10 separately in the morning and evening from street vendors, including farmers who sell flowers or vegetables on the streets. We protested this disparity by selling vegetables at stalls owned by the GBCMC on Thursday,” they added.
Ramesh Vatagal, municipal commissioner, GBCMC, admitted that auctioning of 289 stalls at Cloth Market, Grain Market and other areas is pending from 2016. “A proposal is already submitted to the deputy commissioner Gadag in this regard. We need to follow some procedures like maintaining 18% reservation for SC/STs, as per new guidelines. However, we will complete all procedures within 10 days, and start the auction of shops for rent,” he assured.
However, Govindgoudar warned that protesters have given 10 more days time sought by officials, regarding the issue. “If they fail to auction shops by October 10, then we will observe Gadag bandh on October 11,” he said.