Current Indian Government at Centre proposes and come to a decision between Landlord-Tenant disputes within 60 days with the new Model Tenancy Act, 2020 - and on the other hand, will increase the RENT as per the choices and wishes of the Landlord - the approval of new Bill -will be horrible for the middle class of Mumbai downtown specially at our South Mumbai where still the landlord is occupying more and more buildings under their band, right from their ancestors - the enhancement of monthly bill in this pandemic crisis where NO JOB, NO FOOD, NO BASIC NECESSITIES - will be very difficult for the middle class masses to pay on time. Presently, the landlord covers all their costs, Cess, taxes etc. at the time of transfer of the said properties, but the rent are still based on 1950's resolution.
V/S
Prevailing existing Rent Control Law - passed by both the houses of parliament in favour of the tenants which is summarized as under:
The main purpose of introducing the Rent Control Act, 1958 in India is to protect the rights of tenants, give them security and restricts the landlords in their ability to evict their tenants. This Act has been designed for each and every state in India separately. Therefore, here we are discussing some significant points of the Rent Control Act, 1958.
This favourite and delicate Rent Control Bill was been passed and approved by both the Houses of Parliament and received the assent of the President on 31st December, 1958. It came into force on 9th February, 1959 as The Rent Control Act, 1958. It extends to the areas included within the limits of the Municipal Committee of metro cities of India and to such urban areas within the limits of the Municipal Corporation. The courts are under a legal compulsion to harmoniously read the provisions of the Act so as to balance the rights of the landlord and the obligations of the tenant and landlord toward each other.
Rent Control Acts (RCAs), including The Rent Control Act 1958, are meant to fulfill two main purposes:
protect the tenant from having to pay more than a standard rent.
to protect the tenant from arbitrary eviction.
for example;
If the amount of rent albeit a property is less than Rs. 3,500/- then the provisions of the Rent Control Act, 1958 will apply; however, if the amount of rent albeit a property is more than Rs. 3,500/- then, the provisions of the Transfer of Property Act, 1882 will apply. If the amount of rent charged is Rs. 3,500/- exact, then the provisions of the Rent Control Act, 1958 will apply.
The provisions of this act shall apply to all the hotels and lodges covering in the jurisdiction and the controller shall have all the rights to fix the fair rate to be charged for any boarding/lodging.
Important Terms in the Act
Landlord- A person who is either being entitled to receive the rent (trustee, guardian) or receiving the rent on account of premises that has been lent to the tenant. (section 2(e) of Rent Control Act, 1958).
Standard Rent-As defined under Section 6 of the Rent Control Act, 1958,
Section 6(1) (A) (1) states that in cases of residential premises let out before the 2nd day of June, 1944 the standard rent means:
The basic rent of the premises in case it does not exceed Rs. 600 per annum.
In case the basic rent of the premises exceeds Rs. 600 per annum, then, the basic rent plus 10 percent of such rent.
Section 6(1) (A) (2) states that in case where the premises have been let out on or after the 2nd day of June, 1944, the standard rent means:
If the rent of such premises have been fixed under the Delhi and Bombay-Thana Rent Control Act, 1947, or the Delhi and Thana District Rent Control Act,1952.
The rent so fixed in case it does not exceed Rs. 1200 per annum.
In case the rent so fixed exceeds Rs. 1200, then, the rent together with 10 percent of such rent.
In every other case, the rent shall be calculated on the basis of 10 percent of the aggregate of the actual cost of construction and the market value of the land comprised in the premises on the date of the commencement of the construction.
Section 6(1) (B) (1) states that in cases of non residential premises let out before the 2nd day of June, 1944 the standard rent means:
The basic rent plus 10 percent of such rent. In case such rent calculated exceeds Rs.1200 per annum, then the basic rent plus 15 percent of such rent.
Section 6(1) (B) (2) states that in cases of non residential premises let out on or after the 2nd day of June, 1944 the standard rent means:
If the rent of such premises have been fixed under the Delhi and Bombay-Thana Rent Control Act, 1947, or the Delhi and Bombay Rent Control Act,1952.
The rent so fixed in case it does not exceed Rs. 1200 per annum.
In case the rent so fixed exceeds Rs. 1200, then, the rent together with 15 percent of such rent.
In every other case, the rent shall be calculated on the basis of 10 percent of the aggregate of the actual cost of construction and the market value of the land comprised in the premises on the date of the commencement of the construction.
Draft & Propose Model Tenancy Act 2020:
The Government of India, proposes to make a decision Landlord- Tenant dispute within 60 days with a brand new Model Tenancy Act 2020. The Model Tenancy Act focuses on the Tenancy Agreement, Rent, Rights and obligations of Landlord and Tenant, Eviction and Recovery of possession of premises by the owner, Rent Authorities their powers and Appeals, Rent Courts and Rent Tribunals and Jurisdiction.
The Summarized Glimpse of the Model Tenancy Act’ 2020 will be read as follows:
Introduction
Accordingly, in line with the vision of Hon'ble Prime Minister Shri Narendra Motabhai Modi of ‘Housing for All’ by 2022, MTA has been prepared with the target of balancing the interests and rights of both the owner and tenant; and to make an accountable and transparent ecosystem for renting the premises in a very disciplined and efficient manner. it'll enable creation of adequate rental housing stock for various income segments of society including migrants, formal and informal sector workers, professionals, students etc.; increase access to quality rented accommodation; and enable gradual formalization of rental housing market, it'll help overhaul the legal framework with relevance rental housing across the country, it's expected to provide a boost or an incentives to personal participation in rental housing sector thereby addressing the large housing shortage.
Salient features of Model Tenancy Act:-
After commencement of MTA, no premises to be rented except by an agreement in writing on mutually agreed terms::
MTA to be applicable to residential and commercial tenancies;
MTA to be applicable to the full of the State/UT i.e. urban and rural areas;
Rent to be fixed by mutual agreement between the owner (lessor) and tenant (lessee);
MTA to be applied prospectively and also the existing tenancies shall still be governed by the respective extant rental laws of the States/UTs;
MTA to supply for a fast-track quasi-judicial mechanism for adjudication of disputes;
MTA to be applicable to any or all tenancies with no monetary threshold;
The terms of agreement shall be binding upon successors of landlord still as tenant for the remaining period of the tenancy agreement. Sub-letting isn't permitted without execution of supplementary agreement between landlord and tenant.
If the term of tenancy ends at the time when locality (where rented premises is situated) experiences any inevitable accident event, the owner shall allow the tenant to continue possession of premises for one month from the cessation of such unavoidable casualty event on the identical terms of the prevailing tenancy agreement, down payment for residential premises shall not exceed two months’ rent and just in case of non-residential premises, it shall be as per the terms of tenancy agreement subject to a maximum of six months’ rent. the safety deposit shall be refunded by the owner at the time of taking on vacant possession of the premises, after making due deductions, if any.
Recovery of possession of premises by the owner on certain grounds.
The landlord is entitled to double the monthly rent for the primary two months and thereafter, fourfold of the monthly rent just in case of default by the tenant to vacate the premises after termination of tenancy.
The objective of the Model Tenancy Act
Beneficial for both Landlords and Tenants by providing them a win-win situation.
MTA mutually agreed terms, which can minimize the chance of disputes, and just in case of any dispute, the identical shall be resolved quickly through the speedy dispute redress mechanism prescribed within the proposed legislation, for residential premises shall not exceed two months’ rent.
Multimedia Studio will bring more details on the drafted copies of this MTA 2020 as the news comes in our Studio in Mumbai, which will be a hot topics political motivated as several local political and national parties will participate their chapatis in this hot burner in future.
#yusufbhandarkar Email:multimediastudio9.net
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