An anlysis of Maharashtra Rent Control Act 1999.

Q: Do you know that recently, the Maharashtra Rent Control Bill 1999 passed with amendments by both the Legislative Assembly and Legislative Council. It is targated to bring together the 3 different Rent Control Laws in operation in the State of Maharashtra.

Sunil Joshi, Mumbai

20th February 2015

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Replies (13)

Hi everybody,
According to the proposed policy, all commercial establishments occupying more than 500 sq-ft and also those living as tenants in residential homes bigger than 862 sq-ft will not be protected under the Rent Control Act.

Ramesk Polekar, Mumbai

9th June 2015

Comment

True Ramesk,
And the tenants occupying more than 46.5 sq-mtr of commercial area and 80 sq-mtr residential area, shall be eligible to continue to occupy rented premises so long as he or she agrees to pay the market rent as per principles contained in the ready reckoner rate manual. The landlord will not be allowed to dislodge the tenant so long as the tenant pays the market rent.

Bikram, Mumbai

9th June 2015

Hi Bikram,
But i think after reading all the reviews, landlord are not happy enough as some of the landlords have been complaining that the standard rent is quite low and doesn't give them much a little amount as rents. For example, in posh Marine Drive where buying a property would set you back by a few crores, landlords of pre-1969 buildings just get arent of Rs 200/ month from a tenant. Is not a sad for them?

Govinda,

20th July 2015

I think the new rates are good for them......Kab Tak Bina Mehnat Ki Khaoge......I have been for Delhi For 13 Years and saw that not a single member of the family of my landlord is doing any work they all depends on the rent. They don't provide education to their children because they have a huge land banks. I can give you the lakhs of such example. They increase the rent 20% annually. I rented a room in 2002 in Rs.1000/month and it has reached Rs. 3850/month in the year 2013.

Bikram, Mumbai

20th July 2015

@Bikram,
Not everywhere, specially in those city where there is employment opportunity. There are few houses which are as big as 2500 sq-ft but still get only Rs 200 as monthly rent. Similarly, in many properties in Altamount Road, Mumbai where rents are being charged at Rs 75/month for a residential home. Even slum dwellers pay more.

Govinda,

20th July 2015

Hi everybody,
What will be the rights and duties of the landlord? Is there any changes in leave and license agreement?

Priyadarshini, Pune

21st May 2015

Comment

Hello Priyadarshini,
According to the amended Maharashtra Rent Control Act 1999, the landlord shall be bound to keep the premises in good and tenantable repair. And most important, landlord should make sure that the leave licence agreement is registered.

Shantanu Kumar, Mumbai

21st May 2015

Thanks Shantanu,
It is really a good news for both tenants and Landlords. After along time few amendment have been made in Rent Control Act? What are the condition of eviction as per the amended Rent Control Act 1999?

Priyadarshini, Pune

21st May 2015

Under the amended law, a landlord shall be entitled to recover possession of any premises if the court is satisfied that the premises are reasonably and required bona fide by the landlord.

The landlord can also recover possession of the premises if the tenant has, without the landlord's agreement given in writing, erected on the premises any permanent structure.

Shantanu Kumar, Mumbai

21st May 2015

Thanks to all for the valuable discussion,
At the same time this act will affect the people of lower income group. So, which are the areas to be affected most by amend Rent Control Act?

Vineet Tendulkar, Mumbai

20th May 2015

Comment

Yes, it may be and according to experts these amendments are likely to hit tenants from Girgaon and Dadar will suffer the most. Many of these tenancies have been passed on by inheritance and belong to lower income households.

Praveen Modi, Mumbai

20th May 2015

In spite of the fact that, the policy makes a provision to make sure the rent amount does not cross 30% of your income level. A first instance of linking rent to income, paying 1/3 of the salary, too, will not be a workable option for most. It could also be a challenge to get the correct information on the income levels of tenants and such controls could further increase red-tape and bureaucracy.

Vineet Tendulkar, Mumbai

20th May 2015

Hi Vinnet and Praveen,
What are the salient features of the The Maharashtra Rent Control Act 1999?

Bikram, Mumbai

21st May 2015

Good Morning Bikram,
The Maharashtra Rent Control Act 1999 brought about many changes in the Bombay Rent Control
Act. As per this bill it is the landlord's right to fix the rent and increase it at the rate of 4% per annum from the date of commencement of the act. He can also increase the rent at the rate of 15% per annum for improvements and alterations provided 70% agreement in writing.

Miraniyatin, Mumbai

21st May 2015

Even i read the news and found that the Housing activist has criticize the state government and said the plan was part of its liberalization agenda. It does not mean that families occupying larger flats are not necessarily wealthy.

Dayananda, Mumbai

7th May 2015

Comment

This is really not a good decision and Maharashtra Govt. should come clean because it will cause to large-scale foreclosure of middle-class families in the city. This is nothing but a land grab of tenanted properties. State Government cannot push such a proposal without consulting all stakeholders.

Praveen Modi, Mumbai

7th May 2015

As per land lord, the amount which they are getting as a rent is not sufficient to the repair and maintain their properties but as per the housing experts most landlords had themselves bought these properties for a few lakhs of rupees decades ago.

Ravi Waghmare, Mumbai

7th May 2015

Hey all,
Have you heard the latest news on Rent Control Act, Maharashtra? A state housing department plan to amend the Rent Control Act which will likely to be hit 5 lakh Mumbai families. It has created panic among residents.

Ketalpujara, Mumbai

7th May 2015

Comment

Really a sad new for the tenanted residents. Suggestion is still in the initial phase of discussion by housing department officials, but its results could be explosive for the BJP-led government in Maharashtra.

Ramesk Polekar, Mumbai

7th May 2015

Hi Ramesk,
What is mentioned in the proposal and how it will affect the tenanted residents?

Ketalpujara, Mumbai

7th May 2015

Well Ketal,
The proposal says landlords can ask for the first 3 yrs charge 50% of the market rent to people occupying houses bigger than 862 sq-ft and commercial establishments bigger than 500 sq-ft. After the 3 yrs, the rent could go much higher.

Ramesk Polekar, Mumbai

7th May 2015

Since many years, these tenants have been secured under the Rent Control Act and pay very low rents (a couple of hundred rupees a month), and the BJP-led government feels these families should now pay much more than what they are paying currently.

Ketalpujara, Mumbai

7th May 2015

It means if the proposal get approve, could come as a big bonus for city property owners, who feel they receive very little from tenants, it is likely to cause to extensive protests and frustration.

Ramesk Polekar, Mumbai

7th May 2015

I think this proposal will be another big disaster like the city's draft development plan and It will return on the government and needs to be reconsider on it..

Ketalpujara, Mumbai

7th May 2015

@Deep,
However, when there is redevelopment of the said property, the landlord usually makes a deal with the developer and stakes his claim of his 33% and accordingly takes profit out of the property permanently. Those who are in accommodation or in possession of the said property after redevelopment become the sole owners of the said premises.

Khushbu , Ghaziabad

21st February 2015

Comment

@Raheja,
In case of redevelopment of old properties in Mumbai, there is reference to pagdi properties. The opinion paid to a landlord as a fine, premium or consideration known as pagdi has been legalised by Section 56 of Rent Control Act, 1999.

It is now also lawful for a tenant to receive any amount in consideration of the quit or transfer of his tenancy. Incidentally, in the Rent Act, 1974 giving or receiving pagdi in cash was held "illegal" hence there was extensive use of black money. Now too, in cities like Mumbai, for the transfer of tenancy, 33% of the amount in transaction is paid in cash to the landlord to effect the transfer of tenancy or assignment.

Deep Thakur, Delhi-NCR

21st February 2015

Comment

You are right Deep,
As per the amended Rent Act1999, the landlord cannot file any case against the tenant on the ground of non-payment of the standard rent or permitted increases due, until the expiration of 90 days next after notice in writing of the demand of the standard rent or permitted increases has been served upon the tenant.

Khushbu , Ghaziabad

21st February 2015

Comment

@Diwakar,
According to the Act the landlord shall not be allowed to the recovery of possession of any premises so long as the tenant pays, or is ready and willing to pay, the amount of the, standard rent and permitted increases, if any, and observes and performs the other, conditions of the tenancy, in so far as they are consistent with the provisions.

Deep Thakur, Delhi-NCR

21st February 2015

Comment

@Lokesh????
As per Section 16 (1) (I) of the Act provides that the landlord may recover possession subject to the provisions of section 25. Section 25 states that a landlord shall be entitled to recover possession of any premises if the court is satisfied that the premises are reasonably and required bona fide by the landlord.

Diwakar Shetty,

20th February 2015

Comment

Well Lokesh,
The landlord can also increase rent at 25% / annum for special or structural repairs, exclusive of any repairs carried out under the Maharashtra Housing & Area Development Authority (MHADA) Act. He can also increase rent due to any increase in taxes.

Diwakar Shetty,

20th February 2015

Comment

@lokesh,
According to the Act, every landlord shall be confined to keep the premises in good and tenantable repair. If he neglects to make any repairs, within a reasonable time after a notice of 15 days is served upon him by post or in any other manner by a tenant or jointly by tenants interested in such repairs, such tenant or tenants may themselves make the same and deduct the expenses of such repairs from the rent or otherwise recover them from the landlord.

Lokesh Patwa,

20th February 2015

@Lokesh,
Landlords view:- Ownership present to both rights and obligations upon the holder. The Maharashtra Rent Control Bill 1999 has clearly spelt out the duties as well privileges of the landlord.

Diwakar Shetty,

20th February 2015

Comment

@Diwakar,
It is the landlord's right to fix the rent and increase it at the rate of 4%/ annum from the date of the commencement of the Act. He can also increase the rent at the rate of 15%/ annum for improvements and alterations provided 70% tenants agree in writing.

Lokesh Patwa,

20th February 2015

You should know about the new rent Act called the Maharashtra Rent Control Act 1999 brought about several changes in the Bombay Rent Control Act. This Act does not apply to any premises belonging to the Government or a local authority, any premises let or sub-let to banks, or any Public Sector Undertakings or any Corporation established by or under any Central or State Act.

Lokesh Patwa,

20th February 2015

Comment