Rent Control Act.

Salient Features of the Maharashtra Rent Act, 1999
By Bharat Gupta, Advocate

Posted on 10th July 2002
The Maharashtra Rent Control Bill, 1999 (L.C.Bill No.VI of 1993) passed with amendments by both the Legislative Council and the Legislative Assembly aims to unify the three different Rent Control Laws, in operation in the State of Maharashtra. The Bill has brought about several changes in the existing Bombay Rent Control Act which expires on 31-3-2000.
The new Act called the Maharashtra Rent Control Act, 1999 extends to the whole of the State of Maharashtra and shall come into force on the date notified by the State Government in the Official Gazette.
Exemptions (Sec.3):
The Act shall not apply to :
any premises belonging to the Government or a local authority or against the Government … but shall apply in respect of premises let out to the Government or a local authority; – any premises let or sub-let to banks, Public Sector, Undertakings (PSU), foreign missions, international agencies, multinational companies, private and public limited companies having paid-up share capital of Rs. 1 crore or more.
Any premises let or sub-let to banks, Public Sector Undertakings (PSU), foreign missions, international agencies, multinational companies, private and public limited companies having paid-up share capital of Rs. 1 crore or more.
The State Government may direct that all or any of the provisions of the Act shall, subject to such conditions and terms as it may specify, not apply to premises held by religious or charitable institutions administered by a local authority and to premises held by an university…provided the tenancy rights of the existing tenants in such premises are not adversely affected.
Act does not apply to the premises, which are let or given on license for less than 12 months.
Definations (Sec.7):
Standard Rent means standard rent fixed by the Court plus an increase of 5%; or the rent at which the premises were first let on or after 1-10-1987.
Tenant includes deemed tenant, sub-tenant, heir, legal representative, assignee. Transmission of tenancy shall not be restricted to the death of the original tenant, but shall apply even on the death of any subsequent tenant …
Rent in excess of Standard Rent illegal; any contravention punishable with imprisonment upto 3 months or fine upto Rs. 5000/- or with both.
Increase in rent (Sec. 11) :
4% p.a. from the date of the commencement of the Act;
15% p.a. for improvements and alterations other than tenantable repairs which the landlord is required to carry out, provided 70% pf the tenants consent in writing;
25% p.a. for special or structural repairs, exclusive of any repairs, exclusive of any repairs carried out under the MHADA Act ;
Due to any increase in taxes; to the extent of increase.
Recovery of Possession :
No eviction suit can be filed on the ground of arrears until the expiration of 90 days next after notice of demand served upon the tenant.
No decree for evicton shall be passed in an eviction suit on the ground of arrears, if the tenants pays upwithin 90 days from the date of service of the summons of the suit the arrears of rent with 15% interest and continues to pay the standard rent and permitted increases till the suit is finally decided and also pays the costs of the suit.
Landlord entitled to recover possession from licensee :
On expiry of license; in default can apply to the Competent Authority. Such licensee liable to pay damages at double the rate of the license fee – an arrangement of license in writing shall be consclusive evidence of the fact stated therein.
Time Limit for disposal of suits/appeals :
For suits : 12 months from the date of service of summons
For appeals : 6 months

Pending Suits :
Pending suits and proceedings not to be affected by the new Act and to be heard and disposed of as if the new Act had not been passed.

Offences (Sec.53)
Charging rent in excess – non cognizable – imprisonment 3 months – fine 5000/- or both (Sec.10);
Failure to commence the work of repairs after the tenant has vacated by the date specified in the decree or fails to comply with the Court’s Order of repossesion after repairs – cognizable imprisonment 3 months – fine 1000/- or both (Sec.17);
Failure to occupy the premises recovered on the ground of bonafide requirement – cognizable – imprisonment 3 months – fine 5000/- or both (Sec.18) :
Failure to carry out any undertaking given to Court or failure to comply with Court’s Order under a decree obtained on the ground of bonafide requirement by the landlord for the demolishing the premises for the immediate purpose of erecting new building – cognizable – imprisonment 30 days – fine 5000/- or both (Sec.19);
Failure to intimate to tenant the date on which the erection of the erection of the new building shall be completed – cognizable – imprisonment 3 months / fine 5000/- or both (Sec. 21);
To cut-off withhold essential supply or service – upto Rs. 100/- for each day during which the default continues (Sec.29);
Failure to restore any essential supply or service – imprisonment 3 months, fine 1000/- or both (Sec.29);
Conversion of residential into commercial premises by landlord – imprisonment 6 mts – fine 10000/- or both (Sec.30);
Failure to issue the rent receipt – fine 100/- for each day of default (Sec.31);
Failure to enter into a written agreement of tenancy or leave & license or have the same registered – imprisonment 3 months – fine 5000/- or both (Sec.55).

Tenancy agreement to be compulsorily registered (Sec.55) :
agreement of tenancy or agreement of leave & license to be in writing and shall be registered – responsibility of getting such agreement registered shall be on the landlord and in the absence of the written registered agreement, the contention of the tenant about the terms and conditions on which the premises were given shall prevail, unless proved otherwise.

Stamp duty on Tenancy Agreement (Art. 5 of Stamp Act)
for non-residential premises = 1000/- per sq.metre;
for residential premises = 100/- per sq.metre. (in Mumbai).

Right of Tenant & Landlord to received lawful charges (Sec.56) (i.e.PUGDI) :
It is lawful for the tenant to receive any pugdi as a condition of relinquishment, transfer, assignment of his tenancy;
It is lawful for the landlord to receive any pugdi for grant or renewal of a tenancy or for giving his consent to transfer the tenancy to any other person.