Pune Municipal Corporation (PMC) faced setbacks in its ambitions for generating revenue through seasonal firecracker sales during the upcoming festival season.
This year, vendors have banded together to undermine the PMC’s expectations for financial gain from the online auction system, resulting in considerably lower income for the municipal body.
Vendors engaged in wholesale firecracker sales along the banks of the Mutha River, particularly near Vartak Garden, conspired to participate in the auction using a single computer.
This collective action led to the PMC receiving only a marginal increase of three to four thousand rupees above the expected rent for each stall, a stark contrast to the anticipated revenue.
Historically, for the Dussehra and Diwali festivals, the PMC allocates space for wholesalers to set up stalls, charging them rent for this prime location.
However, the inability of other businesses to secure stalls raised complaints, prompting the PMC to shift to an online auction format last year.
This decision was met with enthusiasm, as evidenced by some stallholders paying as much as one lakh rupees for just thirteen days of business. Eager to replicate that success, the PMC again opted for an online auction this year, contracting a private firm to oversee the bidding process.
The rental price for a stall was set at approximately 27,000 rupees. However, when the auction was held, forty-three participants registered for just forty stalls, and the bids yielded a disappointing outcome for the PMC.
The earnings fell significantly short compared to last year’s figures. Upon conducting a technical review of the auction, it was revealed that numerous vendors had participated using the same computer, raising suspicions about the auction's integrity.
In light of these findings, the PMC has decided to cancel the current auction and has announced plans for a new bidding process.
Firecracker vendors, when approached for comment, argued that there were no restrictions preventing them from participating in the online auction. They also expressed that previous online auction experiences had presented challenges, leading to a rush to secure stalls this year.
Fearful of incurring substantial losses due to prior orders placed for firecrackers, many vendors opted to pay additional rent to guarantee a stall. Despite their efforts, the increased rental fees resulted in minimal profit margins compared to their investments.
The firecracker business is crucial for many families who rely on it as their primary source of income throughout the year.
Vendors noted that the PMC had indeed received higher-than-expected rents through the online bidding process, emphasizing that the auction was open to all and conducted fairly.
In light of these circumstances, the PMC's decision to cancel the auction has been perceived as unjust towards the seasonal vendors who are reliant on this income.
