Bhatkal: Bhatkal was in news a few months ago when shops in the Municipal Commercial Complex buildings were bid for a record amount. To its chagrin, the Municipality has now realised that it has been unable to even collect the amount it used to get as rent from these shops in the past! During the auction in January, a small shop (about 10x10 feet) with a cement sheet which used to fetch Rs 600 rent, went for bids as high as Rs 1,00,800. Other shops too were auctioned for amount like Rs 55,000 and Rs 35,000. But the Bhatkal Municipality has not grown richer because of this auction, the reality is something else.
“Of the 156 shops, we have not received rent from about 102 shops in the last 10 months! Many shop owners have approached the court against the auction and have got a stay from the High Court bench in Dharwad," Municipal Council president Sadique Matta told Deccan Chronicle. Nominated councillor Venkatesh Naik. blames officials for the entire confusion. “The fear of losing ownership of the shop during the bid had made several shop owners bid hundred times more than the actual price. Now as the bidding rate was high, they have gone to court. One shop owner had gone to the extent of bidding for Rs 1,00,800 to retain his shop,” he said.
“When the auction began people started to bid high for the shops which were in prime locations. The traders who owned the shop for several years, did not want to lose their shops as they had made huge investments by borrowing in lakhs. So they bid more to retain the shop. In some cases it crossed Rs 50,000 and one shop which is located in a very good area went for Rs 1,00800 rupees,” he said. But the owners knew that though they bid for high amounts, they would be unable to pay the money. Traders feel that the bidding process was not correct and have approached the court and got a stay.
