Chennai Corporation's debt woes: Rs 1,488 crore dues, Rs 102 crore interest per year
The mayor listed the details in response to the query on debt raised by BJP councillor Uma Anandhan of Ward 134 at the council meeting
Chennai Mayor R Priya (Photos: Justin George)
CHENNAI: Mayor R Priya announced on Thursday that the city corporation's debt currently stands at Rs 1,488.50 crore, and the local body pays monthly interest of Rs 8.50 crore.
The mayor listed the details in response to the query on debt raised by BJP councillor Uma Anandhan of Ward 134 at the council meeting. "As of February 1, the Chennai Corporation's debt amount is Rs 3,065.67 crore, of which Rs 1,577.18 crore has been paid. A total of Rs 1,488.50 crore is pending, and the civic body pays Rs 8.50 crore as interest. Additionally, the principal amount is paid every financial year."
The revenue department of the GCC extended the lease period of commercial complexes from nine years to 12 years. The council adopted the resolution to extend the lease every three years.
The civic body notified that the monthly rent for the commercial outlets should be paid by the 5th of every month. In case of any delay, a penalty of 12 per cent must be paid with an annual interest.
The resolution noted that the local body collects Rs 1.80 crore from 127 commercial complex buildings and 5,914 shops monthly. The rent for all commercial complex buildings will be increased by 5 per cent annually.
Per the notification, a 5 per cent increase will be implemented in addition to the 15 per cent hike in effect from September 1, 2023.
