Mumbai's municipal markets had face a major rent hike post-pandemic. Worsening the situation, the Brihanmumbai Municipal Corporation (BMC) has proposed raising rent for galas and market stalls by 50 per cent.
The last rent adjustment had taken place in 1996. However, the sudden hike for the markets is arbitrary and unfair, claimed merchants.
The BMC plans to bill rent by the square foot, a proposal that was finally accepted after three years of waiting. The quality of the market and goods will determine the rent, with Crawford Market, an A category market with booming business, expected to have higher rent. Vendors who previously were not charged per square foot may suddenly see a difference in rent, which could impact their bottom line.
One such market is Lalbaug Market, where merchants are particularly concerned about the new rent hike. Lalbaug Market Merchants Association's monthly rent has increased from INR 120 to INR 1,350 with a five per cent annual increase and an 18 per cent GST. Merchants from Lalbaug Market have met with BMC officials to discuss the issue, and have raised concerns about the impact of the rent hike on their business.
The Lalbaug Market Merchants Association's president, Rajendra Bahadur Singh, stated: "We can accept a jump from 120 to 200 rupees, but we cannot afford to raise it to 1,350 rupees with a five per cent annual increase and an 18 per cent GST. What shall we make and put away? Municipal marketplaces are not maintained either."
Many vendors are concerned that they will not be able to afford the new rent, particularly if foot traffic remains low.
Senior officials have acknowledged their error and promised to discuss redress with the BMC commissioner.
On Thursday, March 23, Gala holders from Lalbaug Market met with joint municipal commissioner Ramesh Pawar, assistant municipal commissioner Prakash Rasal, former Shiv Sena UBT corporator Anil Kokil, and MLA Ajay Choudhary on behalf of other trade associations and stall holders.
Prakash Rasal, assistant commissioner for markets has explained that the new rent system is fair. He told HT that, "In the past, the rent was billed in accordance with a company resolution from 1996. Since 1996, there have been no modifications. After three years of waiting, this proposal was ultimately accepted. We started charging per the square foot in order to have consistency."
Moreover, he accepted that there maybe inaccuracies in the rent estimate because the system is being updated online.
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