Bengaluru: Traders want the state government to regulate rent

Bengaluru: For the last two months, most of the shops were shut due to the restriction imposed to contain the spread of the second wave of Covid-19 pandemic. Even though the business came to a standstill, rents were not reduced nor were they compromised. Shopkeepers had no choice but to wind up their business and vacate the places due to insistence from the landlords for full payment of rent.

The city prepares for more relaxations from Monday, but many shops will still remain closed. In such grave times, traders want the Karnataka government to step in and come up with a formula between the landlords and tenants. Many traders want the state government to formulate something as they did to keep a check on the private school fees last year during the first wave.

“At least 30 shops on Brigade Road, including showrooms of leading multinational clothing and lifestyle brands, have shut down over the last two months. Similar is the case on M.G. Road, Church Street and Commercial Street. One of the main drivers is the demand by landlords for payment of full rent for even the months when the city was in lockdown”, said Suhail Yusuff, secretary, Brigade Shops and Establishments’ Association.

The pattern is replicated in other commercial hubs too.

Sajjan Raj Mehta, a senior trader from the wholesale hub of Chickpet in the Old Pete said, “Most of us haven’t paid rent for March. Some landlords are offering to accept rent for lockdown months in instalments. But this doesn’t help us. In the last 15 months, there has been a lockdown for five months. Even during the remaining 10 months, the business has been very dull. We are not in a position to absorb the rent for these months”

According to the traders, the best solution is some form of regulation in rent collection.

Mr Yusuff said, “The law is heavily loaded in favour of landlords. Tenants and landlords do not have an equal relationship. Hence, it is important that the government step in and broker a formula for rent like it did for private school fees.”

Arun Kumar AR, secretary of Malleshwaram Commercial Forum said that landlords will not accept this option unless the government has something to offer them. He said, “They must be provided relief in property tax, electricity bills and other payables to the government.”

Uday Garudachar, Chickpet MLA, who owns the chain of Garuda Malls said that none of the tenants have paid the tenant for more than three months and nearly 30% of the business would close down. He said, “We too have costs. Last year, we brokered a formula where both we and the tenants absorbed the losses. We cannot bear maintenance bills and payables to the government, including taxes, on our own.”

Jagannath Reddy who owns a commercial complex in north Bengaluru said that rent was the only income for most of the landlords and government intervention would not be a right thing. He stated, “Technically, education is a not-for-profit sector in the country. Hence, government intervention can be defended. But the government cannot and must not intervene in business.”