Over 20 Retailers in Khan Market & CP threatens exit if Rent Negotiation talk fails
NEW DELHI: Marquee retail names in two of New Delhi’s and India’s most storied shopping destinations, Khan Market and Connaught Place, may soon disappear thanks to landlord-tenant rent disputes.
More than 20 retailers in the country’s two most expensive retail locations are in discussions with landlords and may down shutters if the talks fail. Restaurants and traders’ associations said 8-10 stores — including the likes of Full Circle and Cafe Turtle — have closed down in Khan Market, and more closures are expected in the coming days.
Atul Bhargav, president of the New Delhi Traders Association, said that although 80% of retail stores have opened in Connaught Place, many may shut shop “soon with hardly any sale” and given that rents and maintenance are high.
Manpreet Singh, treasurer of the National Restaurant Association of India (NRAI), said he had not opened his Connaught Place restaurant, Zen, owing to high maintenance costs.
Tenants and landlords have different takes on the dispute. Priyanka Malhotra, owner of Full Circle and Cafe Turtle, told ET: “One of the directors of Full Circle had a meeting with the retail space owner on March 18, prior to the lockdown. We requested the owner to waive the rent as… a lockdown was anticipated. We did not hear back from him, despite several calls, emails and messages. It was only two-and-a-half months later that we received a reply offering no waiver for the lockdown.”
Malhotra said, in contrast, landlords for her outlets in the Capital’s high-rent areas Nizamuddin and Greater Kailash have waived off lease payments.
Singh too said he had opened his Greater Kailash restaurant as well as the one on tony Malcha Marg.
Ramesh Parchani, owner of the Khan Market retail spaces where Full Circle and Cafe Turtle were located, said: “We have suggested staggered payments, but they (retailers) were asking for discounts of up to 80%.
While we can agree to reduce the rent, they are not sure if they can stay for a year. The burden of paying property tax and income tax, which is about 50% of rent, will then fall on us.”
Many other tenants said their business won’t be viable without a rent waiver for the lockdown period, and a further big discount for some months to come. However, landlords said the demands are unreasonable given the high tax rates.
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