Santushti falling on hard times?
High rent, low footfall driving businesses out of complex
The chic Santushti Shopping Complex in Delhi’s high- end, highsecurity area of Chanakyapuri seems to have fallen on bad days. The shopping complex wears a deserted look these days and is systematically losing on footfalls. Shopkeepers blame high rentals and say that’s what has driven more than a quarter of its businesses out. More may follow soon.
The upscale market, managed by the Air Force Station authorities, has over three dozen stores sheltered in terracottaroofed pavilions, and nestled in lush green gardens. But with the lone restaurant, Basil & Thyme, leaving Santushti for the more practical and better- valueformoney Sundar Nagar market in February this year, Santushti now lacks even the basic comfort of buying a bottle of cold water or grabbing a cup of coffee.
Sunil Chandra, who runs the famous continental restaurant, said the authorities scaled up the rent several- fold in January 2012, apparently to match the commercial rates at the across- the- road Ashoka Hotel. But the retailers complained that they did not enjoy the same facilities — like extended working hours, valet parking and captive audience of a five- star hotel. And so they went to court.
But by the time the Delhi high court disposed of the store owners’ plea against the spiked- up rent in April 2015, most retailers were staring at a monthly rental of nearly ` 400 per sq ft — with maintenance charges, that meant close to ` 90,000 to ` 5 lakh per month. That’s when the exodus began, Mr Chandra said.
The monthly rentals were barely ` 30 per sq ft in 1992 and ` 70 per sq ft in 2011, according to Rajvir Handa, whose leather accessories store Tack moved out to Noida this month after selling out of Santushti for 25 years. He said the lease rentals and maintenance charges increase every year by 10 per cent.
Until the closure of the case, the store owners were paying a fixed interim rent of ` 200 per sq ft decided by the court — about ` 40,000 to ` 2 lakh per month.
“In order to vacate, I had to pay a large chunk — the increased rentals and the outstanding amount as per the revised rates in 2012,” Mr Chandra told this paper. He said after moving to the Sundar Nagar market, he has lost some of his regular clients — several from the embassies and high commissions closeby and some from Delhi’s corridors of power.
Barely a few hundred metres away from the Prime Minister’s residence, Santushti shopping complex has been on the checklist of many visiting foreign dignitaries and global celebrities like Hillary Clinton, Carlos Menem, the former President of Argentina, and Hollywood stars Arnold Schwarzenegger, Tom Hanks, Goldie Hawn, Richard Gere, among others.
“Santushti has been on the itinerary of many First Ladies during presidential visits,” Manish Dutt said who runs Maison 15, a home décor store, in the complex. Mr Dutt had to shift out his cigar store, Cingari, to Mehar Chand market last year, after the hefty monthly rentals started affecting his business.
The complex was established in 1985 by the Air Force Wives Welfare Association in the premises of the Air Force Station. And since then couture stores and designer boutiques like Tulsi, Nur, Anokhi and Lotus Eaters have catered to a niche clientele.
And a meal at Basil & Thyme was how many used to conclude their shopping trip at the quaint Santushti — which in English means satisfaction. Retailers recall how in the market’s heydays,
Continued from Page 13 would be a two- hour- long wait for a table at Basil & Thyme.
But with the spiked up rent and no flexibility to serve an extra meal, Mr Chandra said his restaurant was no longer “financially viable”.
Mr Handa said his store Tack was down to three customers a day from six seven a day earlier.
With no flexible timings — shops can open from 10 am to 7 pm, Monday to Saturday only — and enhanced security checks by the Air Force authorities, stores at Santushti rue that these are also the reasons why they are losing customers.
Eleven of the 37 storeowners have shut shops. While some are relocating to smaller spaces in the same complex, others are moving out.
The monthly rentals in Lutyens’ Delhi’s favourite Khan Market range between ` 2.5 lakh and 35 lakh for shops measuring 200- 2,500 sq ft, and at Mehar Chand Market it ranges from ` 1.2 lakh to ` 9 lakh for 300- 2,600 sq ft spaces, as per property websites.
Even very high rents are justified if one can generate business, Mr Handa said.
“At least 40 heads of states have come to Santushti. It should have shone like a jewel in the crown, but instead, the government is trying to shut it down,” he said.
Squadron Leader Aroop Bhattasali, officer incharge of the complex, declined to comment on the issue of increased rentals and businesses shutting shop, saying he is not authorised to speak. The authorities have issued tenders for the vacant shops.
As per rules, 60 per cent of the shops are reserved for the defence category.
Eleven of the 37 storeowners have shut shops. While some are relocating to smaller spaces in the same complex, others are moving out.