Rent enhancement by municipal authorities must follow established procedural guidelines, including the formation of an expert committee, and authorities cannot impose drastic hikes unilaterally without providing lessees an opportunity to be heard regarding fair market valuation.

ORDER

This Writ Petition has been filed challenging the impugned notices dated

15.03.2017 and consequential arrears notice dated 21.09.2019 issued to the Petitioners on the file of the 3rd respondent and to quash the same as illegal, incompetence and without jurisdiction and further direct the 3rd respondent to fix the rent in consonance with G.O.No. 92, dated 03.07.2007 on the file of the

1st respondent.

2. The case of the petitioners is that they are small vendors involved in vegetables, fruits, flowers, tea business and they are the lessees of the shops owned by the 3^rd respondent Vandavasi Municipality. The 1^st respondent herein passed G.O.No.92 by forming guidelines for fixation and enhancement of rents/license fee for the shops leased out by the Municipality to various small vendors. Based on the said G.O., the 3^rd respondent herein fixed rent for the petitioners’ shops with 15% enhancement and the lease period was existing till 31.03.2018. Whileso, suddenly, the 3^rd respondent issued notice dated 15.03.2017 to the petitioners by enhancing the license fee/rent for the shops by

500% to 600%.

2.1. The petitioner had given a representation on 03.05.2017 to the 3^rd respondent stating that the enhancement would have done only from 01.04.2017 and the 3^rd respondent without issuing a written order, verbally stated that they will not take any action against the petitioners, despite which the 3^rd respondent suddenly issued arrears notice dated 24.07.2018 and 17.07.2018 to the petitioners herein claiming them to pay arrears from November 2017. When the petitioner approached the 3^rd respondent and explained their case, the 3^rd respondent assured the petitioners that they will take necessary steps to withdraw the rent enhancement notice dated 15.03.2017 officially and the petitioners may ignore the same and continue to pay the old rent as fixed in the notice dated 21.02.2019. Based on the said assurance given by the 3^rd respondent, the petitioners are continuing to pay the existing rents. While being so, suddenly the 3^rd respondent had issued another arrears Notice dated 21.02.2019 to the petitioners claiming that they should pay the arrears from June 2017-2018. The said notice as well as the notice dated 15.03.2017 are impugned in this Writ Petition.

3. The learned counsel for the petitioners would submit that in similar circumstances the Division Bench of this Court in a batch of Writ Appeals in W.A.Nos.1806 and 1807 of 2018 vide order dated 25.07.2018, had set aside the impugned notice for the reason that the rent has been enhanced without forming a monitoring committee and without giving an opportunity to the petitioners before fixing the rents and therefore based on the same, he requests this Court to set aside the impugned notices.

4. The learned Government Counsel by reiterating the averments made in the counter affidavit filed by the 3^rd respondent would submit that the rent fixed is in accordance with the prevailing market value and it cannot be said to be on the higher side and that apart the fixation of rent is in consonance with G.O.Ms.No.92 dated 03.07.2007 and the enhancement is intended to augment the income of the municipality. Further, he would submit that the basic rent will be refixed once in 9 years in accordance with the prevailing market value of the property and therefore the petitioners cannot be expected to pay the same lease rent which they paid 9 years ago. He therefore prays for dismissal of this Writ Petition.

5. Heard both sides. Perused the records.

6. A perusal of the order passed by the Division Bench of this Court on

25.07.2018 in W.A.Nos.1806 and 1807 of 2018, shows that the Division Bench of this Court had directed the expert committee to refix the correct rent with respect to the subject property therein and therefore the peti