Hyderabad: The Greater Hyderabad Municipal Corporation (GHMC) is losing out on revenue of Rs 100 crore. It recently enhanced the lease rates of 1,037 properties whose lease period was less than 25 years and increased its income from Rs 30 crore to Rs 100 crore.
There are another 1,333 properties for which the lease period is more than 25 years. It is neither collecting rent on nor renewing the leases of these properties, allegedly due to political pressure. Some of the properties were leased out as far back as the 1950's and 1960's.
If the GHMC Act is amended, the corporation will have the potential to collect another Rs 100 crore. However, political influences have ensured that the Act is not amended, thus denting the corporation's revenue.
A recent study has revealed that the GHMC has lost out on over Rs 100 crore over the past decade because of its failure to renew leases. When queried about the subject, a senior GHMC official said that the corporation had no legal right to enhance lease rates. He, however, added that even if the corporation issued a demand notice from 2011, it would collect at least Rs 100 crore.
