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The Vadodara Municipal Corporation (VMC) is facing difficulties in recovering around INR 12 crore in rental dues from leased properties due to missing records. While the corporation maintains registers of 2,737 rented shops, cabins, handcarts, and temporary spaces, many formal agreements, particularly those from before 1983, are unavailable. Over the years, some properties were sublet or transferred permanently for one-time fees without proper documentation. VMC officials have acknowledged the need to update rent structures and enhance collection methods to address this long-standing record gap effectively.
The Vadodara Municipal Corporation is encountering challenges in collecting overdue rent from several properties leased across the city because many important legal records are missing. The civic body maintains rent registers that list 2,737 leased spaces, including shops, cabins, handcarts, and temporary shed areas, but formal agreements or related documentation for a large number of these leases cannot be found. Advertisement
Officials noted that most of the missing records relate to leases granted before 1983, making it difficult to verify tenancy terms or take action to recover outstanding dues. The corporation currently has about INR 12 crore pending in unpaid rent, a sum that has accumulated over decades due to the lack of proper documentation.
Sources explained that over the years, some leased properties were sublet or permanently handed over in exchange for one-time payments, typically INR 25,000. While these arrangements were financially beneficial for the recipients, they have complicated efforts to regularize rental accounts and enforce payments. The absence of proper transfer records has been a significant barrier to recovering dues from these properties.
The VMC standing committee has recommended revising rent rates to better reflect current market values. The committee also suggested increasing charges for properties that were sublet or transferred informally. Officials emphasized the importance of updating tenancy records and improving oversight to strengthen the corporation's revenue collection process. They also highlighted the need to explore new strategies to enhance rental income and address long-standing gaps caused by missing documentation.
VMC officials indicated that resolving these issues is crucial not only for recovering pending dues but also for establishing a transparent and accountable system for managing leased properties in the future. Updating rent rates, ensuring proper documentation for all leases, and monitoring subletting and transfers will help secure stable revenue streams and prevent similar challenges in the years ahead.
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