December 13, 2024 5:40 pm

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KMC faces revenue challenge as private beach huts continue being rented high rates

The Karachi Metropolitan Corporation (KMC) is grappling with a significant revenue disparity, earning only Rs16,000 per year for each of its 267 beach huts, despite many being rented out commercially for Rs300,000 to Rs400,000 per day. This issue was highlighted by Mayor Barrister Murtaza Wahab during a meeting with the Beach House Owners Association on Tuesday.

During the discussion, Mayor Wahab expressed concerns about the misuse of KMC properties. He noted that many individuals and business organizations renting these huts are violating contractual terms and exploiting the properties for substantial profits, rather than for the welfare of Karachi’s residents.

“Some people acquire land and buildings from the KMC and treat them as their private property,” Wahab stated. “For instance, the KMC is getting the rent of huts at the beach of Hawke’s Bay at Rs16,000 per year while several huts are being operated on a commercial basis for which the fare of a hut is charged as Rs300,000 to Rs400,000 per day. This isn’t fair.”

In April 2021, the city council passed a resolution to increase the rents of these huts. However, several tenants filed lawsuits and obtained stay orders, preventing the implementation of the new rent rates. Despite the low annual rent of Rs16,000, some tenants have not paid rent since 2017. Mayor Wahab emphasized that if tenants find the rent increase excessive, they should vacate the huts, which can then be reallocated.

The mayor also highlighted the improved access to beach areas due to the construction of Mauripur Road and Kennup Road, resulting in increased visitor numbers. He called for tenants to decide whether to continue legal battles or resolve the issue through negotiations, offering a discount on rent for lump-sum payments from 2017 to June 2024.

To address the situation, Mayor Wahab directed the senior director of land to issue rent challans immediately and notify defaulters without resorting to disciplinary actions like demolishing the huts. He expressed support for public-private partnerships, suggesting that such initiatives could better manage and make the institutions profitable.

The Beach House Owners Association, represented by Nadir Dubash, Adeel Memon, and Shah Purmanikji, pledged their support to enhance the attractiveness and functionality of the beach venues. They expressed willingness to provide entertainment options to attract more visitors and proposed ideas to make Karachi beaches more appealing and viable for businesses.

Mayor Wahab assured the association of his full support, emphasizing the importance of keeping these public places accessible and well-maintained for the benefit of all Karachiites

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