Many shut shops while others seek reduced rent at Gurugram markets

A majority of the shop owners in HSVP markets sign leases, which are notarised, for 11 months and pay monthly rent in the first week of the month.

Owners of establishments, such as retail outlets, gyms and standalone eateries, in city’s popular markets are renegotiating their rent agreements and seeking suspension of payments as the three-month-long lockdown has created uncertainty over their businesses.

Many business owners have also vacated their shops at markets in sectors 22, 23 and 31, and other markets of the Haryana Shahari Vikas Pradhikaran (HSVP), seeking relief for the next few months. (Yogendra Kumar/HT File PHOTO)

Many business owners have also vacated their shops at markets in sectors 22, 23 and 31, and other markets of the Haryana Shahari Vikas Pradhikaran (HSVP), seeking relief for the next few months, till the situation normalises. While occupants of some establishments have been able to get relief, a majority of them have been left in limbo due to the tough situation, according to market associations.

A majority of the shop owners in HSVP markets sign leases, which are notarised, for 11 months and pay monthly rent in the first week of the month.

Rakesh Malik, the president of the Sector 22 market association, said that in view of the prevailing situation, they had held a meeting with owners and tried to convince them to reduce and even remit rent in extreme cases. “We haven’t approached the government yet and are trying to manage the situation on our own, but if things go further downhill, we might seek help from authorities,” he said.

Shabnam Manchanda, who runs a state-of-the-art gym in Sector 22, says that besides paying ₹2.5 lakh per month in rent, she has to pay electricity bills, maintenance costs and salary of her employees. “Right now, the rent and electricity bills are the biggest worries and we have requested our owner to reduce it so that we can survive the tough situation. The government should also help by either remitting the power bill or offer a large discount,” said Manchanda, adding that even when her gym opens, there is no certainty that members would return.

The worst-hit establishments are small cafes, eateries and restaurants, as the business has remained negligible even after resuming operations.

There are 134 shops in the sector 22 market, out of which 15 to 20 shops have either vacated or are in the process of shutting shop.

Inderpal Singh, who runs a popular eatery in Sector 22, said that he used to pay ₹70,000 in rent for two shops, but with business down to just 10% of the pre-Covid days, he is vacating the larger shop to cut down on rent. “I come from Delhi daily, have to pay salaries and other overheads. The government must change restaurant timings so that people can order food for dinner and this is how the industry can survive,” he says.

Shops have been left without customers as around 15,000 IT and ITes employees, who used to live in 428 paying guest houses (out of the 619 total plots) in Sector 22, have returned to their home states, says Rakesh Malik, president of the Sector 22 market Association. “This huge population used to visit the restaurants, gyms, juice shops and other establishments in sector 21, 22 and 23 markets and adjoining areas. Now, they are gone and business is in a lurch,” he said, adding that one of his tenants also vacated a shop, while another has asked for heavy remission of rent.

The situation is similar in Sector 31 as well, says Abhinay Baweja, who runs a restaurant and food business. “Almost 10 to 15% of the shop owners, especially those who were new, have vacated the shops as they could not pay rent. Others are trying to get their rent reduced and remitted, but these efforts mostly are not very successful,” he said.

There are around 200 shops in the Sector 31 market, of which 30-40 shops are in the food business. Around 12 to 15 shops in the market have vacated and many tenants are trying to negotiate reduced rents with the owners.

Baweja says that the property owners should take a reasonable view of the situation and handhold business owners in these difficult times. “All of us paid rent on time, but the situation at present is unimaginable, as no one can predict what will happen,” he said.

In Sector 23, shop owners say that not many have vacated shops. “The situation is no doubt bad, but we are trying to manage,” said a shop owner on the condition of anonymity.

Satinder Yadav, general secretary of the market said that in Sector 23, there are around 150 shops. The market association has tried to ensure that those businesses, which can’t pay rent, are given relief. “We are asking everyone to be reasonable in these difficult times and as such, only a few shops have vacated,” he said.

In Palam Vihar, property owners said that there has not been an instance of owners vacating shops, but that tenants are requesting for major rent remissions. “No shop owner has yet vacated the premises but if the situation remains similar, this is also going to happen,” said Gaurav Kumar, who owns a chemist shop.

Harender Rana, the president of the Palam Vihar Market Association said that small eateries and takeaway shops have shut operations, but larger shops are surviving.