Gujarat rent control act
Manish Patel
(Querist) 19 May 2018
This query is : Resolved
I had inherited one shop from my mother, which she had given on rent [around 1970] for her and my livelihood at that time. No formal documents in writting made at that time.My mother died in 1994. And I become the owner of the shop. Till start of tenancy date to now, a tenant has paid Rent of Rs.1500/- annually. They did not take my permission to continue as a tenant in writing though I accept the rent. Now, I want to get minimum standard rent with a permissible increase every year as per Gujarat rent control act read with Bombay rent control act since start of tenancy with proper rent documents in writting. What should I do?
Kishor Mehta
(Expert) 19 May 2018
If a rent receipt is passed against collection of rent then he is your tenant under the Gujarat Rent Act. You cannot evict him unless he has acted in contravention of the Act. If, however, you feel that the rent is not as per the Act, you may file legal proceedings for Standard rent.
T. Kalaiselvan, Advocate
(Expert) 21 May 2018
Where a landlord is required to pay to a local authority in respect of any premises any rate, cess or tax imposed or levied for the purposes of such authority he shall be entitled to make an increase in the rent of the premises by an amount not exceeding the [increase paid by him by way of such rate, cess or tax] over the amount paid in the period of assessment which included the date of the coming into operation of this Act [or the date on which the premises were first let, whichever is later] and such increase in rent shall not be deemed to be an increase.
There are lot of practical difficulties if you decide to follow the rent control act for implementing the law in this regard.
Hence better you issue a legal notice t the tenant stating that he had been paying the same rent for the past .....years and in view of raise in the taxes as well cost of living he is required to pay an enhanced rent with immediate effect, if he is not willing to pay the same he may vacate the premises.
If you do not want to take any such steps then you can talk to him and get the things agreed orally and enter into a fresh trental agreement with him as the new owner after which the things can be regularised as per law.
Manish Patel
(Querist) 22 May 2018
thank you very much for sharing your knowledge. In reality, I want to sell the property to make my livelihood better but tenant asked me to pay Goodwill. Now, How can I pay goodwill of their business. And because of this, they are not willing to vacate the property. Is there any legal way to get my property back and sell it freely?
Ms.Usha Kapoor
(Expert) 23 May 2018
Under Gujarat Rent act if your tenant is not paying you good rent you file a petition in Gujarat rent control Act for Standard rent.Apart from this The Supreme court has given a land Mark judgment in 2011 in favour of landlords in connection with low rents paid by old tenants. THe operating portion of that Judgment are:
Supreme Court has drafted a model landlord-tenant agreement promising tenants five years of peaceful stay in the premises if they give rent at market rate, increase it by 10% every three years and pay the property tax for the house.
It asked the tenants to pay up every charge accrued on the house to enable the landlord get the rentals without any deduction.
It found tenants occupying the property by paying rent at a rate determined 20-25 years ago, and said half of the landlord-tenant disputes would not have reached the courts if the tenants agreed to pay rent at market rate.
Writing from personal and judicial experience, the court said: "We deem it our duty and obligation to fix some guidelines and norms for such type of litigation, so as to minimize the landlord-tenant litigation at all levels."
It said: "The tenant must enhance the rent according to the terms of the agreement or at least by 10% after every three years. If the rent is too low in comparison to the market rent having been fixed almost 20 to 25 years back, then the present market rate should be worked out."
For further information on this issued please click the following link:
https://timesofindia.indiatimes.com/india/Supreme-Courts-model-rent-agreement-assures-tenant-5-yrs-stay/articleshow/8328837.cms
Manish Patel
(Querist) 23 May 2018
Very Thank a Lot Ushaji for your valuable input on the subject matter.
Manish Patel
(Querist) 24 May 2018
original tenant has stop doing business but business name continue as same. can legal heirs consider as tenant?
