MAPUSA
The Mapusa Municipal Council (MMC) has once again come under fire, this time for its failure to recover substantial rent dues within its jurisdiction.
An audit report by the Director of Accounts has pointed out the council’s indifferent approach towards rent collection, which has led to the accumulation of a staggering Rs 5.32 crore in arrears.
The audit reveals a steady decline in rent collection percentages over the last five years.
In 2018-19, the MMC collected Rs 3.03 crore, representing 65% of the total demand for that year.
However, the collection percentage steadily dropped in the following years: 55% in 2019-20 with Rs 2.99 crore collected, 44% in 2020-21 with Rs 2.89 crore, 43% in 2021-22 with Rs 3.33 crore and finally only 40% in 2022-23 with Rs 3.57 crore collected.
These declining figures suggest a chronic lack of attention by the council to rent recovery efforts, according to the audit.
The Director of Accounts noted that the council’s lackadaisical approach to revenue collection has not only affected yearly revenue streams but has also caused a buildup of unpaid rent over the years.
“The council has failed to give due attention to revenue collection as well as to address the growing arrears,” the audit report stated.
Several prominent defaulters have been identified in the report, with Bharat Petroleum Corporation owing Rs 14 lakh, Laxmikant Parkar (Rs 7 lakh), Geetesh Dangui (Rs 9 lakh), Janeth Joshine Paul Fernandes (Rs 28 lakh), and Ranjan Mayekar, a substantial Rs 43 lakh in unpaid rent.
The report emphasises that these amounts must be recovered urgently.
“Stern action should be taken to collect the balance arrears along with penalties from the defaulters, and compliance should be reported to the audit,” the report said.
Another critical issue highlighted in the audit is the lack of formal agreements between the MMC and tenants occupying municipal premises.
The report noted that during the audit, no rental agreements were produced for verification.
This lack of proper documentation raises concerns about the legality of many tenancies and hampers the council’s ability to enforce payment.
The audit report has recommended that the MMC take immediate steps to execute formal agreements with all tenants to ensure accountability and facilitate future rent collection.
It also calls for prompt action to address the current arrears and suggests levying penalties where applicable to encourage timely payments.
The negligence in rent collection follows a similar pattern observed in the council’s handling of house tax recovery, which has also faced criticism.
The MMC’s repeated failures in collecting crucial revenue streams like rent and taxes are seen as undermining its financial stability and limiting its ability to provide essential public services.
