STM Shopkeepers Contest Municipal Corporation's Lease Renewal Fees in Court
One third of the members refuse to meet the corporation's steep financial demand, raising questions about the fairness of the process.
Surat: Shopkeepers from the Surat Textile Market Cooperative Society are taking legal action in response to the Municipal Corporation's lease renewal scheme. The controversy stems from a substantial Rs 127 crore lease renewal premium, mandated by the Municipal Corporation, which also sets a repayment timeframe of a decade. Despite these measures, a significant number of society members remain unwilling to acquiesce to the financial demand.
It appears that the shopkeepers are far from willing to pay the Rs 5 lakh per shop installment fee determined by the STM management. Instead, they have taken their concerns to the court. When asked about the discordant points prompting their disagreement or displeasure, many society members shared their concerns about the Municipal Corporation's handling of the lease renewal process.
Shopkeeper Manish Gupta, despite paying his Rs 5 lakh contribution towards the premium, expressed dissatisfaction with the committee's operation. Gupta highlighted a discrepancy with the BPMC Act, arguing that the Municipal Corporation cannot demand full payment for land given on lease. He pointed out that while the rent can be increased during lease renewal, the premium amount should not match the Jantri Bhav or current market price of the land. He affirmed the shopkeepers' readiness to pay increased rent and even the cost of the land, if the municipality agrees to register the land under the society's name.
Vikas Gupta, a petitioner and fellow shopkeeper, posed a pointed question in the High Court regarding the lease renewal process. He queried the disregard for the existing lease agreement, which states that if the STM Cooperative Society wishes to renew the lease six months prior to its 50-year expiry, a written notice must be issued to the Municipal Corporation. Following this, both parties would decide on a new rate, and should disagreements arise, arbitration is provided for. He asserted that the Jantri Bhav premium price would imply land ownership and therefore necessitate land registry under their names.
Jashraj Bhogar, another shopkeeper, has consistently raised his voice against what he sees as an unfair demand by the government for Jantri Bhav pricing. Bhogar argues that the lease agreement should be treated as a rental agreement rather than a sale. Despite depositing the Rs 5 lakh fee determined by the committee, he and other shopkeepers do so reluctantly and primarily based on relationships, while vehemently disagreeing with the renewal terms.
