Rent row in Jamshedpur’s Sairat markets

Jamshedpur: A long-standing dispute over the revision of shop rents in the city’s historic Sairat markets has once again come into focus, with more than 7,500 shopkeepers closely watching the next decision of the Jamshedpur Notified Area Committee (JNAC). 

Traders’ outfits have stepped up their protest against the proposed rent hike and submitted a memorandum to the JNAC Deputy Municipal Commissioner demanding that the increase be withdrawn.

The Sairat markets, regarded as the commercial backbone of Jamshedpur, are nearly 110 to 115 years old.  These markets consist of shops constructed on government land and allotted to traders on rent or licence.

While shopkeepers run their businesses from these premises, the ownership remains with the urban local body.  Over the decades, these markets have developed into some of the busiest retail hubs in the city and play a crucial role in its local economy.

At present, Jamshedpur has 10 major Sairat markets with more than 7,500 shops operating on nearly 57 acres of government land.  Sakchi and Bistupur are the largest and oldest among them, attracting thousands of customers every day. 

Sakchi market alone accounts for around 3,644 shops and nearly 47 per cent of all Sairat establishments in the city, while Bistupur has about 1,640 shops.  Other markets include Baridih with 606 shops, Kadma with 567, Golmuri with 347, Burmamines with 306, Sidhgora with 280, Sonari with 233, Manifit with 52 and Dhatkidih with 43 shops.

For decades, the management of these markets remained with the land department of Tata Steel. 

However, in April 2022, after the company issued a No Objection Certificate (NOC), the responsibility for managing these markets and collecting rent was transferred entirely to the JNAC. 

The state government had expected that the revenue generated from these commercial properties would go directly to the municipal body and could be utilised for urban development and civic infrastructure.

The dispute began after JNAC proposed a new rent structure for the shops. 

During the period when the markets were managed by Tata Steel, most shopkeepers paid rents ranging between  Rs 30 and  Rs 300 per month under decades-old rules. 

After the management changed hands, JNAC suggested fixing rents on the basis of the shop’s area in square feet and prevailing market rates. 

As a result, the rent of several shops reportedly increased sharply, in some cases reaching between  Rs 15,000 and  Rs 50,000 per month.

The steep increase triggered widespread opposition from traders across the city, who argued that such a drastic revision would severely affect small and traditional businesses. 

Following the protests, the district administration put the proposed increase on hold and initiated steps to review the policy.

A committee has since been constituted on the instructions of the Deputy Commissioner to prepare a revised framework for rent determination. 

At the same time, JNAC has begun a digital survey of all Sairat shops and is assigning each unit a six-digit unique shop identification number, which shopkeepers have been asked to display prominently.

Meanwhile, traders under the banner of the Jamshedpur All Market Association submitted a memorandum to the JNAC Deputy Municipal Commissioner, Krishna Kumar.

The delegation, led by association president Harvinder Singh Mantu and general secretary Naseem Ansari, questioned the basis on which the rent hike was introduced and demanded that the decision be immediately withdrawn.

The traders also sought clarity on the rules and official orders under which the revised rent structure was implemented.

According to the association, shopkeepers were not given prior notice before the increased rent was introduced.

The Deputy Municipal Commissioner assured the delegation that a copy of the relevant order would be made available by Monday and said that the traders’ concerns would be conveyed to senior authorities for further consideration.