A resolution on this was adopted in the July council meeting and the new norms will govern all lease renewals and new allotments effective September 1.

For commercial complexes, market stalls, petty shops, bus stand kiosks, and community halls, leases will be granted in three-year blocks, renewable up to a maximum period of 12 years. Once a property reaches the 12-year limit, no further extensions will be granted; instead, the property will undergo market re-assessment and be re-auctioned.

Properties leased to central or State government departments can extend up to nine years, while non-commercial public-use allotments remain capped at three years.

For civic utility amenities such as paid parking lots, public toilets, digital display panels, and EV charging stations, licenses to collect usage fees are capped at three years before compulsory re-tendering.

The policy mandates a compulsory 5 per cent annual rent increase across all new and existing municipal tenancies. Six months before the expiry of a three-year term, the GCC will issue formal notices requesting lessees to accept the revised rates.

At the end of each three-year cycle, the lessee must execute a fresh agreement and pay a standardised renewal fee based on shop area: Rs 2,500 for up to 100 sq ft; Rs 5,000 for 101 to 500 sq ft; Rs 7,500 for 501 to 1,000 sq ft; and Rs 10,000 for above 1,000 sq ft.

To discourage defaults, a 12 per cent annual penal interest will be charged on delayed payments. In the event of a lessee's death, legal heirs may apply for a name transfer upon clearing all outstanding dues and paying a Rs 5,000 transfer fee.