24-06-2025
- Business
- New Indian Express
Madurai Bench of Madras HC stays G.O. allowing shop licence renewal
MADURAI: The Madurai Bench of Madrac High Court on Monday stayed the implementation of a government order (G.O.) passed on August 6, 2024, which permitted local bodies to grant renewal of shop licences to existing lessees.
A bench of justices SM Subramaniam and AD Maria Clete passed the interim order on a Public Interest Litigation petition filed by C Sivaraj of Sivaganga.
The petitioner claimed that Para 3 Clause VI of the G.O. says local body shall refix the rent within six months before the expiry of the lease period. If the existing lessees agree to the refixed rent, the licence may be renewed, he said.
The above clause empowers municipal corporations to renew licences perpetually to the same lessees, the petitioner alleged, adding that this is in violation of Rule 316 of the Tamil Nadu Urban Local Bodies Rules, 2023, that prohibits grant of extension or renewal of licence to same lessee.
