Shopkeepers in Rawalpindi have expressed their disapproval of the Rawalpindi Municipal Corporation's (RMC) decision to conduct a pool auction, rather than an open auction, for the leasing of 2,500 shops owned by the corporation.
The open auction was transformed into a pool auction by the auctioning committee, allowing the municipal corporation to lease these shops for durations of five and ten years. “The auction committee received three drafts from participants, and the allocation was settled through a fixed match, rather than an open auction for any of the shops,” the shopkeepers said.
Those who questioned the decision faced fare increases of two to three hundred per cent, they added.
The lease for renegotiation was extended to ten years at the five-year auction price.
Shopkeepers, objecting to the municipal corporation's auction lease, voiced their concerns at The Express Tribune’s office, stating that the entire auction process was a charade. They claimed that not only had their rents increased by three to five hundred per cent, but the auction itself was completed through a pool auction without any open bidding.
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Asim Ali, a tenant of the RMC reported that the rent for his shop had surged from Rs2,600 to Rs13,400, with an additional Rs40,000 to be paid separately through the union's mediation. Muhammad Yusuf, another tenant engaged in lathe work in the Municipal Corporation's Stable No 2 shop, mentioned that his shop's rent had risen from Rs3,500 to Rs12,800, and he had also paid Rs40,000 through the union official.
Abdul Rahman, another shopkeeper stated that his shop rent had increased from Rs2,500 to Rs8,500.
It is important to note that the RMC had initially conducted an open auction for leasing its 2,600 shops for five and ten years at various locations, including Pirwadhai General Bus Stand, Ganjmandi, Bagh Sardaran, National Market, Stable No 1, 2, and Stable Road.
In response to the concerns raised, municipal corporation official Muhammad Babar, part of the auction committee, asserted that the open auction was conducted following the law, and the rent increase was based on the committee's assessment.
Published in The Express Tribune, January 24th, 2024.
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