The Maharashtra Rent Control Act In Its Entirety
Each State has its own version of the Rent Control Act, which regulates home leasing. The Bombay Rent Control Act has undergone numerous revisions thanks to the Maharashtra Rent Control Act, 1999, which is applicable throughout the entire State. The first rent law in India was enacted in 1915 under the Bombay Presidency and again in 1939. The Bombay Rents, Hotel, & Lodging House Rates Control Act, 1947 afterwards took its place. The final Act that replaced all the other Acts in an effort to control the rental housing sector in the State is the Maharashtra Rent Control Act, 1999. The Maharashtra Rent Act benefits tenants and landlords, a Smile homes owner headquartered in Mumbai. The Act strives to offer State citizens accessible short-term housing while maintaining open communication between the two parties.
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The Maharashtra Rent Control Bill, 1999 was approved by the Legislative Council. And the Legislative Assembly with modifications that were intended to harmonies the State’s three distinct rent control legislation. This Act does not apply to any property that is legally owned by the government or a local authority. To property that has been leased or subleased to a bank, to any public sector undertaking, or to any corporation created by a state or federal law. The entire residential or commercial building is the full responsibility of the landlord, who may also seek changes thereto.
What obligations does the Maharashtra Rent Control Act place on both the landlord and the tenant?
The Maharashtra Rent Control Bill, 1999 outlines both the tenant’s and the landlord’s obligations.
Rent Conditions
The landlord retains the authority to set the rent and raise it at a rate of 4% annually beginning on the day the Act takes effect. If 70% of the tenants give their written approval. The landlord may additionally raise the rent by 15% annually for improvements and alterations. For particular structural repairs, excluding any done in accordance with the Maharashtra Housing & Area Development Authority (MHADA) Act, the rent may be increased by an additional 25% annually. Rent increases are possible if taxes are raised at the same time.
Rent Requirements
The landlord is still able to set the rent and raise it at a rate of 4% annually starting on the day the Act goes into effect. If seventy percent of the tenants agree in writing. The landlord may additionally raise the rent by fifteen percent annually for improvements and alterations. With the exception of any repairs made in accordance with the Maharashtra Housing & Area Development Authority (MHADA) Act, the rent may be increased by an additional 25% annually for particular structural repairs. Rent increases are possible if taxes are also going up during that time.
Conditions for Eviction
The landlord may regain possession under the conditions outlined in Section 25 of the Act, according to Section 16(1). According to Section 25, a landlord has the right to reclaim control of any premises. If the court determines that they are reasonable and genuine. If the tenant erects a permanent construction on the property without the landlord’s consent, the landlord may also reclaim possession. The landlord may regain possession if the renter, his agent, servant, anyone claiming under the tenant, or anybody dwelling with the tenant has been proven responsible for behaviour that caused annoyance or disturbance to the next house. Additionally, the tenant is held responsible if he has been found guilty. Of using the property illegally or allowing it to be used for another illegitimate purpose.
Rules for Construction
The landlords must adhere to a number of requirements in order to rebuild. They must do specified tasks, which are listed in subsection 6, including:
- obtaining enough funding to complete the project
- The relevant municipal authorities should prepare and approve the proposed building’s plan.
- There shouldn’t be any fewer residential apartments in the new structure than there were in the previous one.
- The old building must be demolished within three months. And the new structure must be finished within 15 months of that.
- The carpeting in the new building must match that in the previous building.
- The premises in the new building will be made available to the tenants of the old building if the landlord guarantees. That the carpet area of the premises authorised in the new building is the same as it was in the previous building.
Accountability for facility maintenance
Every landlord is required by the Act to maintain the property in good shape. Tenant may give landlord a fifteen-day notice of default if landlord fails to make necessary repairs. Tenant has the option to undertake the repairs themselves. Deduct the cost of the repairs from their rent, or pursue other remedies if the landlord ignores the notice. The amount that can be recovered shouldn’t be more than one-fourth of the tenant’s annual rent payment.
The pagdi system’s legalization
There is mention of pagdi properties when it comes to the rehabilitation of old properties in Mumbai. Pagdi refers to the payment made to a landlord in the form of a fine, premium, or payment made in accordance with Section 56 of the Rent Control Act of 1999. The pagdi system has given the tenant the confidence that their paid rent will be minimal regardless price inflation or other fluctuations. The pagdi system is common in select parts of South Mumbai. Where some renters pay a monthly rent of Rs 500 despite the fact that market prices could be as high as Rs 60,000.
Change in Tenancy
According to the Act, receiving money in exchange for giving up or transferring a tenant’s lease is legal. In Mumbai, the landlord receives about 33 percent of the total transaction value in cash to complete the transfer of tenancy.
The Draft Model Tenancy Act (MTA), which is currently being adopted in various states across the nation. Is another noteworthy achievement. It has a number of provisions regarding the rental of residential properties that may be very different from the Maharashtra Control Act. Though MTA is a Model Act, the Maharashtra government may or may not implement it.
As a result, the Maharashtra Rent Control Act is a thorough law that describes the numerous aspects of rental circumstances in Maharashtra. This Act eliminates any uncertainty regarding these components and establishes a precise set of guidelines that both landlords & tenants may turn to in such circumstances.
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