PANAJI
Aggrieved by the harsh provisions in the Goa Municipalities (Amendment) Ordinance, 2020, All Goa Merchants’ Association has been requesting the government to keep the Ordinance in abeyance and consider some changes.
Representatives of the Merchant’s Association met the President of Goa Chamber of Commerce and Industries (GCCI) and based on discussion with them, the Chamber has submitted a representation to the Chief Minister Pramod Sawant, listing out a few of the provisions that were adversely affecting the shopkeepers in the municipal premises.
The GCCI has requested the CM to keep the Ordinance in abeyance and initiate discussions with representatives among the merchant community.
The GCCI letter dated January 8, 2021, requesting changes in the Goa Municipalities (Amendment) Ordinance, 2020 points out that while agreeing that the Ordinance is intended to take care of certain irregularities in transfer and renewal of leases and also to protect/increase the revenues from the municipality assets, the merchant community feels that the Ordinance does not address the concerns and apprehensions of the existing shop holders.
It further states that a prior consultation or discussion with the stakeholders would have helped in understanding the issues currently faced by the shop holders, to make the legislation more humane.
Manoj Caculo, President, GCCI pointed out that the ground realities vary at different municipalities, and that the Ordinance attempts to cover all the municipalities at one go, not taking into account these ground situations.
According to the proposed Ordinance, there would be termination of the leases after 10 years. Restricting future leases or renewal of existing leases only for a further period of 10 years and auctioning thereafter will adversely impact the businesses that are carried out in the leased shops for generations, argue the merchants who feel that their existence is threatened if a higher bidder takes over the premises at the auction.
The letter suggests that unless grave irregularities are committed by the shop holder, all leases should be automatically renewed. However, there is a provision for increasing the rent by a certain percentage every year.
The annual increase in rent by 10 per cent is another point, where the merchants disagree. They have asked for 5 per cent annual increase in the rent. Another point, the letter points out as harsh, is that if any lease is not renewed on expiry of its period, such lease will stand terminated and the chief officer would take possession of the premises after giving 30 days’ notice to the lessee.
The letter demands at least two months’ notice for the renewal of the lease, and if not renewed within that period, only then it should stand terminated.
One of the clauses in the proposed Ordinance says that if the lessee fails to pay rent in respect of premises for three consecutive months, the lease shall be deemed as terminated on expiry of this period. This period should be doubled and made six months, requests the letter. It also says that the penalty and offences are made cognizable and non-bailable, which seems harsh and hence withdrawn.
The merchants have demanded that a selected group of municipal officials under the chairmanship of the Director of Municipal Administration or Urban Development Minister discuss the provisions of the proposed Ordinance with representatives of the shop holders and make necessary changes.
