SMC shops to cough up up to Rs45,000 in rent

Local traders say SHC decision will be challenged in Supreme Court

KARACHI:

In a precedent-setting judgment, the Sindh High Court has ordered a drastic increase in the rent of shops owned by the Sukkur Municipal Corporation (SMC).

The Sukkur bench on Thursday ordered that the rent should be increased as per the market rates - up to Rs45,000 for the shops, which were previously paying Rs500. At a press conference later, local traders announced that they would challenge the decision in the apex court. The rent was increased in light of the findings of an 11-member committee formed, by the municipal commissioner on the court's direction, to determine the prevailing market rents of private properties. The SHC dismissed rejections of the traders over the committee's report and allowed the manifold hike. The new rent regime will be implemented from February 1, as per the order.

The court has also permitted a 10 per cent increase in rent after every 11 months. The bench directed that the rent should be deposited in the municipality's bank account. Following the court's order, the municipal corporation is revising the rates of rent for its commercial and residential properties from Rs69 to Rs185 per square foot. The corporation sought time to determine the rent of Arafat Plaza's shops and flats after which the court granted it two weeks' time till January 27. The court's decision over the rent from the corporation's two petrol pumps is still pending. At a press conference, the traders alleged the corporation has misled the court and deceived the traders.

Haji Haroon Memon said the corporation called a delegation of the traders for a meeting and took out signatures on a register to verify before the SHC that we had attended the meeting. However, he alleged, their consultation was not taken into the account. "A case pertaining to unpaid salaries of the corporation's employees has been expanded to include the rental income," he contended.