Civic body scan on Sikkim plaza

Gangtok, April 6: The Gangtok Municipal Corporation is preparing to crack down on shop owners who have sublet their holdings at the Kanchenjungha shopping complex that the civic body took over on April 1.

The cleanup that is likely to start from May is scheduled be over in a month’s time.

The state urban development and housing department was in charge of the five-year-old complex. But recently the administration of the plaza was handed over to the two-year-old GMC.

There are around 350 hawkers and 225 shops in the four-storied complex.

“The first work of the corporation would be to scrutinise the documents of those who have been given trade and hawker’s licences in the shopping complex. We have received unofficial information that many licence holders and shop owners have sublet their shops. Necessary action, including cancellation of licences, will be taken if anyone is found guilty,” said Gangtok mayor K.N. Topgay.

According to sources, the urban development and housing department rented out shops at Rs 12 per square feet. By that calculation, the average monthly rate of a shop at the plaza ranges between Rs 1,200 and Rs 1,500.

But the licence holders have sublet the units for a monthly rent of Rs 5,000 to Rs 8,000.

“The state is having to incur heavy losses because of this practice,” Topgay said. He, however, did not specify the loss incurred.

Sources at the municipality said the government has also lost around Rs 2 crore as shopowners had not paid licence renewal fees for the past two years.

“Payment of trade licence renewal fee was a matter of great concern as the handing over of the shopping complex took place two years after the civic body was formed. So far there was confusion regarding whom to pay the fees for the renewal. But now, since the hand over has taken place, we will be paying the dues to the GMC,” said Lakpa Sherpa, the vice-president of the All Sikkim Hawkers’ Association.

Although the complex was formally under the urban development department, it did not collect the renewal fees.

“A temporary office will be set up in the complex so that traders can renew their licences without hassles,” Topgay said. GMC sources said all renovation, repair and the beatification work at the plaza would be done from the amount raised through the licence renewal fees.

Lakpa said the traders have welcomed the move. “There are many people who have government jobs and still own shops here. We want the GMC to cancel their licences so that the shops can be handed over to others who do not have any other source of income.”(The Telegraph)