Ruling after-effect: More investment

Amit Agnihotri / TNN / Nov 9, 2006, 02:48 IST

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With the Supreme Court verdict coming in favour of commercial tenants, investment in business is likely to register a 50% jump.

CHANDIGARH: City merchants have another reason to cheer. With the Supreme Court verdict coming in favour of commercial tenants, investment in business is likely to register a 50% jump.
According to experts, fresh investment of around Rs 1,000 crore — which was lying locked up for the past three-and-a-half years, owing to pendancy of the Rent Act issue — may be pumped into market.
Anxious shop-owners, majority of them operating as tenants, did not invest new capital in their ventures for the fear of losing out in the game as the Rent Act notification of administration was challenged up to the apex court. But now all the hurdles have been cleared.
Says President of Chandigarh Commercial Tenants Association Arvind Jain: "The market will boom. All the traders who had been following wait and watch policy would now be encouraged to invest. In the past few years no major investment has been made. The scene would now dramatically change."

Estimates say, around 60-70% of all commercial property in Chandigarh is tenancy-based with around 90 % of shops in the city high street, Sector 17 being tenancy holdings. Similar is the case in other prominent markets. The issue involves a large number of businessmen, both big and small.
The magnitude of the problem can be gauged from the fact that around 20,000 cases related to landlord-tenant dispute are pending in the local courts.
Traders said, in the confusion, which prevailed in the past few years over the Rent Act notification, peripheral markets of the tricity — Zirakpur, Kharar, Rajpura, Ambala — benefited as new investment shifted there.
Now this capital will start coming back to city, say traders.

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