Government U-turn on rent leaves tenants of local bodies in a quandary

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Kochi: Traders and shopkeepers too have borne the brunt of the overall slump in demand amid the COVID-19 crisis. In a relief to tenants of commercial buildings belonging to the state, the Kerala Government has issued an order asking local self-government bodies to grant relaxation in rent to tenants in their buildings based on their financial condition, but there is a rider.

The announcement relaxing rent of tenants in government-owned buildings was made in the assembly session in July. The relaxation was for the period between July 2021 and December 2021. The Additional Chief Secretary (finance) soon issued an order in this regard. However, the Additional Chief Secretary (local self-governance) issued the new order on November 6, diluting the earlier one.

With the new order those who had rented space in buildings owned by local bodies would now have to pay the dues along with interest and penal interest, since they had availed the earlier concession on reducing the rent.

Local bodies occupy 99% of government buildings that have been rented out. The new order was issued following confusion over whether the earlier one was applicable to local bodies as well.

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