Retailers in VK, Saket DLF malls down shutters

Retailers in VK, Saket DLF malls down shutters
The Economic Times, April 9, 2009, page 6

Abhishek Gupta & Ambika Nathani, NEW DELHI

A MAJORITY of retailers in DLF’s upmarket Saket and Vasant Kunj malls have shut shop to protest over the realty major’s refusal to reduce rentals. This follows recent protests by DLF flat owners in Gurgaon and Chennai over high prices and affirms the growing trend of consumer activism in the real estate sector. Says DLF’s Saket retail association president Aakash Oberoi: “We will not open our shops till the time DLF reduces the rent.” The shop owners claim that while DLF is now renting out retail outlets at 50% discounts, it is refusing to bring down their rentals which were finalised way back in 2005. In the mall, more than 20 shops have been shut. The retail outlets here range from small shops like Indigo to big brands like VIP and ColorPlus.

A similar situation exists at the Vasant Kunj mall though this is a new shopping complex and therefore several shops are unoccupied. When contacted, the DLF spokesperson said the relevant executives were not available for comment. A DLF executive, who did not wish to be named, told ET that retailers were given a 50% discount from March-June and they had agreed to run operations smoothly. He said that the shop owners’ decision to boycott the mall constituted a violations of the written contract.