DNCC set to amend law to allot shops at Mohakhali market

Dhaka,  Mon,  26 June 2017
Published : 15 Jun 2017, 22:22:32
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DNCC set to amend law to allot shops at Mohakhali market

Kamrun Nahar


Dhaka North City Corporation (DNCC) is now set to amend the Market By-Laws 2013 and change some provisions to speed up allotment of shops at Mohakhali DNCC market.

The allotment was stalled for years.

The corporation has decided to reduce 'salami' or down payment to 10 per cent from the present 50 per cent of the total shop price.

Besides, flexibility has been proposed for payment of the rest 90 per cent of the price. Under the new provision, an allottee can pay the amount in installments on quarterly basis (three months).

The Corporation proposed amendments to the law at its 16th board meeting held on June 13.

The changes will be finalised at the next board meeting to be held on June 18.

"We will submit the proposed amendments after finalising it at the next board meeting to the ministry for approval. After the ministry's approval, we will float tender again," a top DNCC official told the FE recently.

He said 'salami' fixed by the previous shop allotment committee was much higher as it included land price. The price was fixed about seven years ago and the market was formally opened about three years back.

The basement of the market has been kept for rehabilitation of Karwanbazar and Mohakhali kitchen market traders.

The remaining floors of the six-storeyed market are open for all.

Construction of the Mohakhali market started about 12 years ago on 21.16 bighas of land at a cost of about Tk 1.94 billion. There are 1,178 shops in the market.

Only 42 shops have been allotted so far but are not yet handed over.

The authority first tried to allot the shops at high prices but failed.

The Corporation had floated tenders more than thrice due to poor response as space rate was high.

The price of per sqft floor space has been fixed at Tk 18,000-Tk 25,000.

DNCC officials admitted that the price was fixed without surveying the commercial space rate in the area.

After inauguration of the nine-storey zonal office of DNCC-3 at Mohakhali, DNCC Mayor Annisul Huq in April this year announced that they have a plan to cut the rate to encourage traders to purchase space for shops and start the market in the quickest possible time.  

DNCC officials said it was a bad decision to include land price, a high 'salami' and stringent conditions to pay the remaining amount after getting the allotment paper.

A 100 sqft shop will now cost Tk 2.0 million while its rent has been fixed at Tk 5,000 per month. There is no specific year mentioned in the terms about tenure of allotment.  

The allottee has to pay the land price although he or she is not an owner as the market has been constructed on the government's land.  

"After reduction of 'salami' to 10 per cent, we hope that traders will be encouraged although the space rate will remain same as it was reduced only last year. Besides, installment facility will also help," the official said, adding the monthly rent of the shop will be fixed by the shop allotment committee.

It is not yet known as to whether the present allottees will get the same flexibility.

The present 42 allotees have not paid the full amount, a corporation source said.

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