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Mormugao civic body seals two bank branches over unpaid rent

#Taxation & Finance News#India#Goa
Last Updated : 10th Dec, 2025
Synopsis

The Mormugao Municipal Council recently sealed a private and a public-sector bank in Vasco for failing to pay a total of INR 9 lakh in rent despite repeated reminders. The council used a 'Gandhian' method of offering roses to the bank officials to encourage payment, a tactic previously used successfully elsewhere. The dues are intended for municipal staff salaries. Other defaulters, including government offices, are on notice. MMC emphasized that unpaid rents could lead to further action and relocation of offices until dues are cleared.

The Mormugao Municipal Council (MMC) has recently taken action against two banks in Vasco, Goa, for failing to clear pending rent dues. A private bank branch had an outstanding rent of INR?6?lakh, while a public-sector bank branch at Mangor Hill owed INR?3?lakh. Municipal authorities stated that despite multiple reminders and notices, the banks did not respond, forcing the council to initiate recovery measures and seal the premises.


In an unusual approach, the MMC used what it described as a 'Gandhian' method during the recovery process. Officials reportedly offered roses to the heads of the defaulter institutions as a symbolic gesture to encourage payment. This method had previously been employed by the council in another location, resulting in successful recovery of dues.

The action forms part of a broader effort by the council to ensure timely collection of rent from all municipal property tenants. The recovered dues are intended to support the payment of municipal employees' salaries. Officials also pointed out that other entities, including certain state and central government offices, remain on the defaulters' list and could face similar enforcement if they do not clear their arrears.

Additionally, the council noted that offices of the deputy collector and the mamlatdar are scheduled to move to municipal premises. However, the relocation will only proceed after these offices settle their outstanding rent. The MMC emphasized that strict adherence to rental obligations is essential for smooth civic administration and maintaining operational budgets.

This enforcement marks a continuation of the MMC's stringent measures to recover unpaid rents. By combining symbolic gestures with formal action, the council aims to balance persuasion with accountability, sending a clear message to all tenants that overdue payments will not be overlooked.

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