VASCO
The Mormugao Municipal Council (MMC) is taking steps to resolve its financial difficulties by discussing a one-time settlement (OTS) for unpaid lease rent on municipal properties.
Vasco MLA Krishna Daji Salkar, MMC Chairperson Girish Borker, and tenants met to address issues caused by overdue payments, stemming from objections over rent hikes and accumulated interest. The OTS proposal aims to set fair rates and resolve the dispute. Non-payment of rent had placed the council in a tough financial situation, affecting the maintenance of municipal properties. The OTS is seen as a potential solution for financial stability and better upkeep.
Sources from the MMC explained that the council previously applied a government rate of Rs 12 per square metre for shops and offices. However, the MMC later raised the rates to Rs 25 per square metre, which tenants refused to accept. The issue escalated to the courts, where the lessees won the case. After the verdict, tenants began paying at the old rates, but the MMC refused to accept these payments, leading to unpaid rents and interest. The tenants have now requested the waiver of interest, blaming the MMC for not accepting their rent payments.
Vasco MLA Krishna Salkar said the dispute had lasted for 27 years. “I have been a councillor for 15 years and am familiar with this issue. Despite efforts, it remained unresolved until I raised it in the assembly. The Urban Development Minister assured me that a solution would be found, and we submitted a proposal. A joint meeting was held with all lessees to discuss an amicable resolution within the legal framework,” he said.
Salkar noted that the MMC had initially failed to implement the new rates correctly. However, the matter is now being resolved, and both parties have agreed to settle the dues.
He added that a similar case with HPCL had been resolved, leading to significant revenue for the MMC, which helped clear dues for retired staff and pensioners.
