Municipal stall owners buckle under, pay up increased BMC rent

Rajendra Bahadur Singh, president of the Lalbaug Market Merchants Association, said that their monthly rent, which used to be ₹120, had been hiked to ₹1,400 and would be further increased by five percent every year. “We have been told that we will get relief only after the civic elections when corporators take up our issue

Mumbai: Despite the stiff opposition of municipal market stall owners to the BMC’s 50 percent rent hike, the civic body has refused to heed their demands. Fearing a penalty, the stall or gala holders from 110 municipal markets have coughed up the annual rent amount as per the revised rates in order to continue doing their business.

The new rent proposed by the BMC will depend on the grade of the market and commodity. For instance, Crawford Market is an A category market where business flourishes, so the rent will be more. Kokil, in his letter, made it a point to add that there was a huge difference between the business being carried on at Crawford Market and that being done at Lalbaug Market. (ANI)

The last municipal rent fixed was in 1996, and the sudden hike, especially for Grade C markets, has jumped almost seven times, said mandai operators, adding that it was arbitrary and unfair.

Rajendra Bahadur Singh, president of the Lalbaug Market Merchants Association, said that their monthly rent, which used to be ₹120, had been hiked to ₹1,400 and would be further increased by five percent every year. “We have been told that we will get relief only after the civic elections when corporators take up our issue,” he said. “But until then, we are forced to pay these exorbitant rents. I arranged for funds and paid for six months, otherwise the BMC would have imposed a 50 percent penalty. All the vendors from the city’s 110 municipal markets have paid up.”

Ganesh Rajput, another vendor from Lalbaug New Market said he used to get an eight percent discount on ₹48,000. “Now I have paid ₹78000, which will increase by five percent every year,” he said. “On top of that, there’s 18 percent GST. On what basis are they charging us five percent more every year? I have been here for 22 years. If a survey is conducted, it will come out that around 70 percent of the market is shut down, there are no proper facilities and the toilet is unusable.”

Prakash Rasal, assistant commissioner, markets, told Hindustan Times that the BMC would not heed the demands of the vendors and would go ahead with the 50 percent increase in rent. “The increased rent has been approved by the administrator and civic chief,” he said. “The proposal, which was pending for three years, has finally got approval. In order to have uniformity, we have started charging on a square-foot basis. There is also a proposal to increase it further by five percent every year.”

When asked why rents were being increased when adequate facilities were not provided and many markets were in a dilapidated condition, Rasal said, “The BMC is paying property taxes, and water and electricity charges. The vendors’ earlier rent was meagre. The expenses incurred by the BMC were more than the rent imposed.” He, however, agreed that there would be a substantial increase in rent for some because of the square-foot calculation.

Shiv Sena UBT’s former corporator Anil Kokil had taken up the issue in March with gala-holders from Lalbaug market on behalf of other trade associations and stall holders and had met Rasal and joint municipal commissioner Ramesh Pawar. He said another meeting would be conducted with civic chief and administrator Iqbal Singh Chahal to attempt to get the BMC to revoke the decision. “A seven-fold increase in rent is unfair,” he stated.

Kokil, in his letter to Chahal, said that the gala vendors were all native Mumbaikars who had been doing business for years. “But currently it has become difficult to do business in Mumbai, and more so after the Covid-19 pandemic when their business has become financially disadvantaged due to the online and mall culture,” the letter states. “Despite this, the administration has suddenly imposed a rent hike from September 2022.”

The new rent proposed by the BMC will depend on the grade of the market and commodity. For instance, Crawford Market is an A category market where business flourishes, so the rent will be more. Kokil, in his letter, made it a point to add that there was a huge difference between the business being carried on at Crawford Market and that being done at Lalbaug Market and other smaller markets. He has requested Chahal to revoke the proposal and retain the old rent.