World's costliest shop in dingy lane is a mystery

By Rahul Singh

This nondescript shop has suddenly emerged as a hot property in Delhi. Shop No. 3, next to the Safdarjung Hospital gate and opposite AIIMS, might have been auctioned for a monthly rental of Rs 12,09,000 but its location a dingy narrow lane where there is little space to walk raises questions about the expensive deal.

The shop next to it No. 5 which is a smaller in size was also auctioned but fetched only Rs 58,000 as rental.

The reason for the difference in rentals could partly be the use the two shops can be put to. While Shop No. 3 can be used as a medical store as it meets the required size criteria for a licence which is around 110 sq feet for retail as per law Shop No. 5 was used as a general store. Shop No 3 was earlier too used as a chemist shop.

On Friday the other chemist shops in the lane were swamped by customers.According to NDMC officials, Shop No 3 has been rented out to a person by the name of Mukesh Kumar. Those running the other chemist shops in the area were sceptical about Kumar being able to sustain himself despite the exorbitant rent.

Said Zafar Ahmed, owner of Safdarjung Medicos: "The rent being paid for the shop is definitely more than its worth. We tend to make around Rs 80,000 from sales daily and the shops located next to the gate make 50% more.'' He pays Rs 10,000 for his shop.

Some shop owners calculated the cost of running Shop No. 3 at more than Rs 15 lakh if one includes the cost of stock, maintenance charges, salary of employees etc. So even if the shop earns Rs 2 lakh from sales, the profit margin will not be very big.

Said Sanjay of JKM medical shop: "The cost of running the shop will easily be more than Rs 15 lakh and for a person to earn profits over that seems difficult with more shops having come up in the area.'' Many of the chemist shops were earlier functioning from the subway.

Some people doubt if the bidder will take possession of the shop. Said Sanjay: "With the bid running so high, one will have to see if the bidder actually comes forward to complete the formalities.''

According to NDMC, processing of the formalities will take a week at least, and if the bidder does not take possession, the earnest money of Rs 1 lakh will be forfeited.