MARGAO
One hundred and thirty-eight, that’s the number of trade licenses cancelled by the Margao Municipal Council in the first five months of the current financial year.
Reason: Traders have been knocking the doors of the civic body for cancellation of trade licenses and to wind up their businesses in the commercial capital.
The number of trade licenses cancelled and the establishments shut down may look small considering the extent and nature of trade and commerce in the state’s bustling commercial capital. Requests for cancellation of trade licenses had started last year when the Covid pandemic had raised its ugly head in the state, though in a small way. And, there seemed no end to the number of applications made to the civic body for cancellation of trade licenses and to shut down the business establishments.
In fact, attribute the situation to the Covid pandemic or simply an attempt to tide over the burden of rent payable to the civic body, traders have been knocking the doors of the Margao Municipality for cancellation of their trade licenses.
Considering the number of working days in the last five months, the Municipality seems to have received more than an application a day for the cancellation of the trade license.
The civic body has no statistics at its disposal why traders are going for cancellation of their trade licenses. One thing, however, is clear that most of the applications for cancellation of trade licenses have come from traders operating from leased and rented premises.
This has thrown up a pertinent question whether the mandatory norm of payment of one month rent to the civic body by the traders operating in premises with Leave and License agreement is the cause behind the situation.
For, traders operating in rented premises are required to pay one month’s rent to the civic body based on an agreement entered with the landlord. A municipal official in the know pointed out that one reason behind the traders going in for trade license cancellation could be the rent payable to the civic body and the landlord. “We have come across traders seeking reduction of the one month rent payable to the civic body, even promising to get a fresh Leave and License agreement with the landlord, showing reduction in the rent. The civic body is helpless in this situation as it has no powers to reduce the rent”, remarked an official.
A senior official, however, sounded a note of caution. He pointed out that the civic body should maintain vigil to ensure that traders going in for cancellation of the trade license may return back to apply for a license with a new Leave and License Agreement mentioning a reduced rent.
The official added: “Normally, a trader is required to pay an annual trade license fee amounting to Rs 1074 for his licensed premises, besides fees of displaying advertising boards. But, in the case of trader operating from a rented premise, the trade license includes the license fee and the one month rent. This rent factor could be one of the reason behind traders going for cancellation of licenses”.
Not empowered to reduce rent, says the Chief Officer
MARGAO: Margao Municipal Chief Officer Agnelo Fernandes pointed out that the Goa Municipalities Act does not empower the municipal councils to reduce the rent payable by traders to the civic body.
The municipality has been in receipt of queries from traders, running business from rented premises, whether the civic body could bail them out of the situation arising from the Covid pandemic. “The civic body is helpless in addressing the issue of rent by the traders operating from rented premises. There is no provision in the Goa Municipalities Act giving powers to the Chief Officer to reduce the rent when the trader has entered into a Leave and License agreement with the landlord”, the Chief Officer said.
Officials in the know informed that the Municipal lawyer who is practicing at High Court is also of the opinion that the civic body cannot take any decision to reduce the rent of a business establishment. “We understand the situation of the traders. Because of the Covid pandemic, business has slowed down during the last one year and the traders may find it difficult to pay the rent to the landlord and to the civic body. But, we are not empowered to reduce the rent”, he said.
