Real Estate

All you need to know about the Rent Control Act as a tenant

Rent Control Act as a tenant

The Rent Control Act was passed by the Indian Government in 1948. This Act was passed to regulate the various norms of tenancy and land ownership and to eliminate the abuse of either the landlord or the tenant due to rent or occupancy.

The Maharashtra Rent Control Act, 1999, is the final act that has replaced all the former acts in a bid to regulate the rental housing market in the state. It benefits both the landlord and tenant by providing affordable temporary accommodation to the residents while ensuring a transparent relationship between the two parties.

Rent: The landlord has the right to decide the rent and increase it at the rate of 4% per annum from the date of commencement of the act. The rent can be further increased to 25% per annum for specific structural repairs, exclusive of any repairs carried out under the Maharashtra Housing and Area Development Authority (MHADA) Act.

Eviction: Section 16 (1) of the Rent Control Act states that the landlord may recover possession subject to the provisions under Section 25. According to Section 25, a landlord is entitled to recover possession –

  • If the court feels that the premises are reasonable and genuine
  • If the tenant raises a permanent structure on the premises without the permission of the landlord
  • If the tenant or anyone residing with the tenant has been found guilty of creating a nuisance to the adjoining house
  • If the tenant has been found guilty of using or allowing the premises to be used for illegal purpose

Rebuilding rules: For rebuilding, the landlord needs to carry out certain undertakings as per Sub-Section 6 –

  • Sufficient funds need to be ready to carry out the work
  • Planning for the proposed building should be prepared and approved by municipal authorities
  • The old building’s demolition work should be completed within 3-months and the new buildings should be completed within 15-months thereafter
  • The carpet area of premises of the new building and the old building should be the same
  • The number of residential units in the new building should not be less than the number of residential units in the old building
  • If the landlord gives an undertaking that the carpet area of the premises allowed in the new buildings are same as was in the old building, then the premises in the new building will be offered to the tenants of the old building

Transfer of tenancy: As per the act, it is lawful for a tenant to receive an amount in consideration of relinquishment of transfer of his tenancy.

Many establishments are exempted from the provisions of the Rent Control Act –

  • Premises that have been let or sub-let to banks
  • Public sector undertakings or any corporation established by or under any state or central act
  • Foreign missions
  • Multinational companies
  • International agencies

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