Seven entrepreneurs at Nellikode estate demand money back

Deposit amount to be adjusted against pending licence fee, says corpn.

Seven entrepreneurs who had rented land at the Kozhikode Municipal Corporation’s Nellikode Industrial Estate have withdrawn from the deal and have demanded that the corporation reimburse their deposit amount.

Most of the entrepreneurs could not start their business on time at the estate as the corporation failed to provide the required infrastructural support. However, the corporation has denied their demand for reimbursement. Instead, the deposit amount will be adjusted against the pending licence fee. Besides, their licences are being cancelled.

The Industrial Estate near Chevayur is divided into 29 plots and have been leased out to entrepreneurs. As per an agreement made in April 2014, they were supposed to start their businesses at the estate and a licence fee was to be charged for a period of five years. However, most of the entrepreneurs did not remit the licence fee, mainly because they could not go ahead with their ventures due to lack of infrastructure including power supply.

Recently, the corporation had decided to revive the project and expedite steps to facilitate a smooth take off for the industries. A recommendation had also been made to the State government to waive the licence fee for the period from April 2014 to December 2017.

Only three licensees had started their ventures in the estate since 2014. The corporation had confiscated the plots of the seven, who have now applied for cancellation of their licences. However, two entrepreneurs have applied for licence renewal and have expressed their willingness to pay the licence fee since December 2017 in installments.