MAPUSA
For over a decade, the practice of sub-letting shacks along Goa’s coastal belt has been an open secret.
Despite strict regulations prohibiting the leasing of shacks by their original allottees, the practice has flourished, particularly in North Goa, where a significant percentage of these beachside businesses are managed by non-Goans through informal and undocumented agreements.
It is only now, following the murder of a local at a shack sub-let in Arambol, that authorities appear to be awakening to the scale of the problem. Reports suggest that a large portion of allotted shacks are being operated by non-Goans who circumvent regulations through verbal agreements, proxy applicants and partnerships with external investors while retaining nominal ownership.
The financial incentives for Goan shack owners to engage in sub-letting are undeniable. The capital investment required to set up a shack business is estimated at Rs 20-25 lakh, according to Manuel Cardozo, President of the Goan Traditional Shack Owners Association.
Faced with high operational costs, many local owners find the certainty of a fixed sub-letting sum “ often around Rs 10 lakh per annum “ preferable to the uncertainties of seasonal earnings. Moreover, the tourism department’s lottery-based allocation system has inadvertently fuelled this practice.
Many applicants hedge their bets by applying under multiple names “ those of family members or close associates “ leading to a scenario where an individual may receive multiple shacks or none at all. This has fostered a market for sub-letting, wherein surplus shacks are leased out to third parties, sometimes for substantial sums.
While sub-letting occurs across the State, it is particularly rampant in North Goa. Sources suggest that around 12 shacks in Candolim, at least nine in Arambol, and several in Calangute-Baga and Anjuna-Vagator are sub-let. In South Goa, the problem is most prominent in Benaulim and Colva.
The sub-letting rates vary depending on the location. While a shack in Candolim can fetch around Rs 5 lakh per season, the price soars to Rs 10-15 lakh per season in Arambol. The reason behind this disparity is the darker side of tourism “ many of these shacks allegedly double as hubs for drug trade and prostitution.
While the government has established regulations against sub-letting, the enforcement of these rules remains a formidable challenge. One of the primary obstacles is the lack of formal documentation in sub-letting transactions. Most agreements between shack owners and non-Goan operators are verbal, making it difficult for authorities to prove a violation.
The absence of paper trails allows sub-letting to persist unchecked. Additionally, the tourism department’s limited manpower impedes consistent monitoring of shack operations.
With hundreds of shacks spread across Goa’s coastline, enforcing compliance would require a robust surveillance mechanism that does not currently exist. Field officers from the tourism department often possess knowledge of these violations but fail to report them “ either due to corruption or external pressure.
Furthermore, political and business influences shield violators from legal consequences. Many powerful shack operators have vested interests in the sub-letting trade, and political patronage ensures that punitive action remains rare.
A shack operator, speaking on the condition of anonymity, claimed that law enforcement authorities, including the police, are well aware of the illicit activities taking place in sub-let shacks, particularly in hotspots like Arambol. Yet, little is done to curb them. The financial appeal of sub-letting is not merely limited to operational ease and profit margins.
Some shacks that fetch exorbitant rents “ up to Rs 15 lakh in Arambol “ are known for engaging in illegal activities beyond serving food and drinks. Reports suggest that several of these establishments double as hubs for drug trade and prostitution, luring operators eager to maximise profits through illicit means.
The shack in Arambol where the recent murder occurred was reportedly sub-let to a native of Himachal Pradesh “ a State notorious for its involvement in the drug trade. The entire staff at the shack also hailed from the same region. This revelation has intensified concerns that sub-letting enables criminal networks to infiltrate Goa’s tourism industry, tarnishing its reputation as a beach paradise.
The government has historically taken a lax approach to tackling sub-letting, with only two documented cases of penalties being imposed “ one in 2021 and the recent action against the Arambol shack. However, in the wake of the Arambol incident, there appears to be a newfound determination to root out the practice. The tourism department has ordered the demolition of the sub-let shack and imposed penalties, signalling a stricter stance.
An official from the department, speaking anonymously, confirmed that authorities are now actively working on a strategy to identify and penalise errant shack operators. Though details of this plan remain undisclosed, insiders suggest that closer monitoring, increased documentation requirements and surprise inspections could be part of the government’s approach.
Some shack operators and industry insiders, however, remain sceptical of the government’s intentions. They argue that unless corruption within the tourism department is addressed, enforcement measures will remain ineffective. “If the government has the will, it can easily tackle this menace. The field staff of the tourism department knows exactly which shacks are sub-let but do not report the facts. Corruption is the biggest problem here,” said Cardozo.
President of the Shack Owners Welfare Society, Cruz Cardozo, believes that a united front among genuine shack operators is key to resolving the issue. He advocates for a review of the lottery system to ensure that shacks are allotted to experienced, professional operators rather than those seeking easy profits through sub-letting. “We want Goans to run the shacks, not outsiders. The lottery system is creating a problem. If shacks are given to genuine shack operators, then this problem will be solved,” he asserted.
As the government grapples with the challenge of enforcing anti-sub-letting regulations, the question remains: Will this renewed focus translate into meaningful action, or will the cycle of inaction and complicity continue? With heightened scrutiny following the Arambol incident, the coming months could determine whether Goa’s iconic shack culture remains a legitimate business or an unchecked conduit for illicit activities.
