Ludhiana: The municipal corporation tenants owe the civic body nearly Rs 22 crore in rent, prompting officials to start serving notices on defaulters and warn that properties could be sealed if the outstanding dues are not cleared.The MC has 832 rented properties and another 28 on lease across its four zones. Rental arrears have mounted to Rs 21.98 crore, with Zone D alone accounting for Rs 13.95 crore, the highest among the four zones.The mounting arrears come at a time when the cash-strapped civic body is struggling to generate resources for development works and remains dependent on govt schemes for several projects.Officials said records were being scrutinised to identify tenants who had repeatedly failed to clear rent despite reminders. Notices have now started going out and those who fail to pay even after the final notice could face sealing of their shops or other properties.“We have started serving notices on defaulters. After the final notice, we can proceed with sealing the properties if the dues are still not cleared,” an MC official said.Adding to the civic body’s revenue concerns is the low rent fetched by several properties, including those at prime locations. Officials said rents for some properties range from just Rs 400 to Rs 2,500 a month and have remained unchanged for years.Of the MC’s rental properties, Zone A has 209 shops, Zone C 108 and Zone D 306, while Zone B has 209 kiosks.The issue of rationalising rents has also remained unresolved. A few years ago, the MC introduced a policy allowing long-standing tenants to purchase properties they occupied by paying an amount linked to 2017 market rates, but it failed to draw a significant response.A fresh policy has now been notified for transfer of municipal properties to eligible occupants. Officials, however, estimate that only 15% to 20% of tenants may benefit from it.With arrears piling up even as rents on several properties remain low, the MC faces a two-pronged challenge: recovering Rs 21.98 crore from defaulting tenants and revising rentals to improve recurring revenue from its properties.ZONE-WISE DUESZone A: 209 properties | ₹2.54crZone B: 209 properties | ₹5.15crZone C: 108 properties | ₹33.69 lakhZone D: 306 properties | ₹13.95cr
