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Right to buy

(Querist) 03 September 2011 This query is : Resolved 
Dear Sir,
A tenant has rented a flat for last 15 years and the same flat is supposed to be more than 20-years old. Now due to the sad demise of landlord, his wife wants to sell the flat.
Can the tenant get any discount on the depreciated value for the said flat as per Tenacy Act, 1997 as amended in 2002?
Thanks & kind regards,
Capt. Pijush
Kiran Kumar (Expert) 03 September 2011
Which state has passed this Act?

if it is there then it shall be one of the most ridiculous enactment.
R.Ramachandran (Expert) 03 September 2011
Capt. Pijush, can you tell the State in which the property is located?
adv. rajeev ( rajoo ) (Expert) 03 September 2011
I am unaware of such law. But how come tenent will get discount?
R.Ramachandran (Expert) 03 September 2011
Probably such an idea stems from the following facts: (i) being a tenant for such a long time he has done some great favour to the land lord (ii) the building is old - (for a while just forget about the appreciation of the land value) (iii) the widow wants to sell the flat.

One forgets to think whether if similarly placed one would be willing or agreeable to give the property with such discounts!
prabhakar singh (Expert) 03 September 2011
I am not aware of any Act providing discount in valuation of the property itself but certainly i am aware that an old tenant can value the property based on rent instead of valuation fixed by D.M.or market valuation for paying stamp duty on sale deed.Noticeably
this is also not any enacted law but view expressed by HIGH COURT OF ALLAHABAD in cases
where deed faced impounding or scrutiny .
Devajyoti Barman (Expert) 03 September 2011
You seem to be from Bengal where West Bengal Premises Tenancy Act applies.
No under no Rent Act the tenant is expected to receive any cut from the money made out of selling the building .
However since the tenanted house does not attract good market price the landlord do pay money to the tenants to lure them out of the premises.
In other words the Act is in no way stand in the way of the landlord. It all depend upon the negotiation skill of the landlord.
Chanchal Nag Chowdhury (Expert) 03 September 2011
There is no legal provision for a tenant to get discount. Buying & selling is purely contractual & hard bargains are driven.
For the purpose of Stamp Duty, however,the discounts are available.
girish shringi (Expert) 04 September 2011
I do agree with the experts.
Capt.Pijush Mukherjee (Querist) 05 September 2011
Dear Gents/Folks,
Thanks a bunch for prompt expertise.
Yes by my surname I am supposed to be from Bengal but I am settled abroad & travelling frequently for past twenty-five years.
In fact my question was erronious in the last part of the query, wherein I should have mentioned that if the tenant wanted to buy the same premise/flat which he has been living for last fifteen years, whetrher there could be any discount in buying the same?
However, thanx & k/rgds,
Capt.Pijush
prabhakar singh (Expert) 05 September 2011
Well he is in position of a good bargain because due to his possession even out side buyers would not be ready to give market price.Next privilage may be a lesser stamp duty as stated here in my earlier opinion..
girish shringi (Expert) 06 September 2011
Mr. Mukharjee,
Even if the trend to give discount is practical in selling the property, but not mandatory.

However the Income Tax has allowed the discount as deduction at the market price,which shows that trend is a normal practice.


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