Introduction:
The Maharashtra Rent Control Act, 1999 governs the law related to rent within the scope of the State of Maharashtra. This Act came into force with the aim of unifying, consolidating and amending the law relating to the control of rent, repairs of certain premises and eviction. It also aims to encourage the construction of new houses by assuring a fair return on investment by landlords.
This Act applies to premises let for the purpose of residence, education, business, trade or storage in areas specified.
Background:
In 1992, the Central Government proposed a model rent control
legislation, which was circulated to all the states proposing
modification of some of the existing provisions regarding inheritance
of tenancy and defining the rent level. What drove this was
also the fact that the tenants occupying properties since1947
continued to pay rents fixed then, regardless of inflation and
the realty boom.
'Standard Rent'
The Act states that any premises, which are rented out and protected/covered by the Act, will have a 'Standard Rent'. It further provides conditions under which the Court may entertain an application for fixing the "Standard Rent". Standard Rent, is a fixed amount, within which the rent will have to be confined.
But the Court may refuse to entertain the application if the "Standard Rent" has already been fixed. Further no one can sublet without informing or taking permission of the landlord or else, it will be a ground for eviction.
The Act acknowledges 'Pugri' a as lawful charges received by the tenant as a condition of relinquishment, transfer, assignment of his tenancy; and by the landlord for grant or renewal of a tenancy or for giving his consent to transfer the tenancy to any other person.
Registration:
As per the provisions of the section 55 of the Act, Registration of the Tenancy Agreement is mandatory. The 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.
The Act sets time limit for disposal of suits/appeals, specifies punishable offences like charging rent in excess, withholding essential supply or service, failure to enter into a written Agreement of Tenancy or Leave & License or have the same registered and others.
The Act is applicable to:
- Any premises let out to Govt. or local authority, or banks, Public sector, PSU (Undertakings), foreign missions, international agencies, multinational companies, private and public limited companies.
- Premises held by religious or charitable institutions administered by a local authority.
- Premises held by a university.
- Premises, which are let out or given on license for less than 12 months.
Provided that the tenancy rights of the existing tenants in such premises are not adversely affected. As per the provisions of the section 55 of the Act, registration of the Tenancy Agreement is mandatory. The responsibility lies with the landlord.
Exemptions:
The Act is not applicable to the following types of properties:
- Any premises let out to Government agencies, Banks, Public Sector Undertakings, Corporations established by any Central or State law;
- Any premises let out to foreign missions, international agencies, multinational companies; .
- Any premises let out to private and public limited companies having a paid-up share capital of one crore rupees or more;
- Premises, which are let out or given on license for less than 12 months;
- 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 that the tenancy rights of the existing tenants in such premises are not adversely affected.
Quick review
- The Act came into force in 31st March, 2000.
- The three earlier Maharashtra Rent Control (MRC) Acts have been consolidated into one.
- Rent control Acts in other states also provide legal provisions similar to those in this Act.