Delhi Rent Control Act was amended, passed by the legislature, assented by the Hon'ble President of India; but due to the pressure of the tenant lobby, it has not been enforced till today.
Is it the factual position?
Delhi high court’s decision to hear a petition challenging the Delhi Rent Control Act, 1958 has come as a shot in the arm for beleaguered landlords who have been getting paltry rents for the prime properties they let out. The landlord-tenant dispute has once again come into focus with an association of women landlords from the capital recently moving court.
With the Supreme Court tilting the balance in favour of landlords — allowing them to invoke need even for commercial properties — through a series of rulings over the past few years, the only defence still available to a tenant is the age-old DRC Act which places a ceiling on rent in the capital.
If the HC now bats for landlords while adjudicating the latest petition, one can expect swift disposal of disputes before the rent control tribunals where such cases are decided.
Until now, additional rent control (ARC) courts remained bereft of fresh cases because property owners were hesitant to take to court disputes which would drag on for years, even as the tenant enjoyed continuous and unhindered rights of occupancy over a premise. The status quo meant a property continued to be enjoyed by the tenant.
The only way a tenant can now hope to cling on to a house is by proving in court that his landlord does not actually need the property, a very difficult thing to do.
Speaking to TOI, advocate Atul Mathur, who takes up property-related disputes, said tenants were becoming increasingly indefensible now that the odds are clearly stacked in favour of landlords.
‘‘Although it is too early to say anything definitively, since fresh cases are still at the arguments stage, but there is actually no defence left for a tenant living in a commercial property. I have myself advised three landlord clients to move court because their chances of winning have, after the SC rulings, brightened,’’ Mathur confided.
Lawyers said that for the first time a tenant can be asked by a landlord to vacate his premises. Earlier, non-payment of rent or discreet subletting were the only two technical defaults committed by a tenant that allowed a landlord to take back his property.
Eviction can now be sought on need. And courts hearing such cases will witness how landlords play around with the word need, since the scope for it has been widened. More importantly, bonafide need can now be claimed not just for the owner of the property but also for his or her dependent family, elaborated another lawyer.
As petitioners before the Delhi high court, the landladies Shobha Aggarwal, Suman Jain and Seema Khandelwal argue, the DRC Act is ‘‘an archaic legislation that needs to be struck down as unconstitutional’’.
Provided the high court agrees with these women, numerous landlords in Delhi can now become hopeful about getting much higher rents for the properties that they let out.
PLEASE POST YOUR VIEWS ABOUT THIS NEWS.---TUSHARCOSMIC--MY REAL NAME.
Vijay Kumar (Advocate) 23 July 2010
Thank you sir for providing very valuable information. Please tell about the status of the amended DRC Act.
Mr. Vijay ,as far as I know this amended act 1995 could not be implemented.
Here is my own video about both of these acts --may be helpful,plz. go through and send me your comments also.
I am giving you some more material to think.
This legal injustice has killed many people,made many seriously ill ,deprived many people of their properties,who are real owner of these properties.
Let us take look into an article published by Sheikh Pervez Hameed ... 27/07/05--------------- Amendments to Delhi Rent Control Act (1958) in 1997 (a piece of legislation violating the fundamental right of an individual to property rights) has once again been put back. Strong traders lobby (main beneficiaries of status quo) has successfully capitulated the Urban Development Ministry. The Ministry has decided to hold back the move of tabling it in the monsoon session of the Parliament. The bill has been pending in Rajya Sabha for 8 years. Many owners are stuck with non-paying tenants due to this Act. Sad and heart rending stories of how tenants moved in on nominal rents and have become the owners of the properties abound. This bill had been passed earlier by both sessions of Parliament and the President had given his assent. Due to pressure from powerful tenant lobbies of Connaught Place, Chandini Chowk and South Extension, the bill was notified ... a formality for the passed bill to become law. Common Cause, a NGO sought direction from the Delhi High Court to the Govt. for notification of the bill. A committee of Rajya Sabha, on the issue "Can the Executive delay the enforcement of enactment passed by Parliament and assented to by the President" considered it as setting a unhealthy precedent by the Govt. by deferring the enforcement. Tenants of these areas pay Rs. 5 to 10 per month rental where as the prevalent rent in these districts are as high as Rs. 450/- per Sq. Ft. In most of the cases, tenants are now taking advantage of the bullishness in the reality market to illegally lease out the properties of which they hold lease. The genuine owner is not being given his due. The method employed is ingenious - using the franchise route. Delhi Rent Control Act in its current form is the single reason why Delhi landlords prefer to give their places on rent to foreigners. Foreigners go back, Indians stay on and use the Act to exploit the owners. This is for properties where rents are lower than Rs. 3,500/- per month. Over Rs. 3,500/- the law is balanced but the sentiment of good owner-tenant relationship has been systematically destroyed over the past few decades by the use of this Act. Generous donations to the political parties election funds by the tenant trader's lobby ensures that Government continues to deny its citizens the basic right to own and dispose of properties. Issues like this are of concern to the big time real estate investors as there is a lack of clarity. Govt. speaks differently, acts differently. Mind you, these traders are not so big in numbers, just well connected and very voluble.
Here is the link,U can directly go there also.
Here is the link of this foolish act--Delhi Rent Control Act-1958
Here is the link of the amended act of 1995,which could not be implemented
Parijat Kaul (Consultant) 08 December 2010
Alternate mediation forums can be a way of resolving such cases.
Aap Ki Kachehri is one such reality show that offers to spread legal awareness through masses by by way of on show civil disputes resolution between two parties through the process of arbitration/mediation.
Another positive aspect of this effort is that the programme offers a compensation to the needy parties if they agree to come and resolve their dispute on the show. We prefer to take up cases referred by an NGO because the programme can then attach the beneficiaries to the NGO and release the compensation through that NGO. NGOs contributing towards the effort receive donation for their support in the cause.
The show is open to cases of Gender discrimination, s*xual minorities discrimination, live-in partners disputes, parent-child matters, sibling rivalry, inter faith/ caste matrimony issues, khap affected relationships etc. The idea is to get representation from a cross sections of society to present a complete picture and send the message that knowing your Legal Rights is an important thing and one can find resolution to most of the civil dispute through mediation.
This is however important that the both the parties must come forward for mediation whether they finally agree on the settlement during the show or not is a different matter. Participants in the programme be able to speak hindi/ hindustani/ Urdu
You can send your matters to:
Aap Ki Kachehri - Kiran ke saath
P.O. Box No. 37454
JB nagar Post Office
Mumbai – 400059
kamna (PR) 19 April 2011
please help me to know about what to do to take back our property from tenents possesion.we r unemployeed and our commercial and residential tenents are taking benefit with the possession of our property.. there is no agreement for rent as they r old tenents.and rent should be more than 25000-30000/pm commercial and more for residential area .. but they r paying 100 rs/pm for commercial and 1500 -2000 residentail.
Tenents are like very rich through the benefit they r taking from commercial area.. and we need our commercial area and unemployeed ..
Is there any way in indian law from we can get justice fast? please suggest if there is any way..??
B.K.GUPTA... (ADVISOR) 30 April 2011
Provision for fair increase in Rent is very much justified and as regards eviction of a tenant from residential property, tenants having own house should be evicted and this step would be appreciable as also it would be fair and may be identified as natural justice.
But so far as commercial property is concerned mainly individual business shops /offices it would not be fair till the legislature draws out a scheme for rehabilitation or makes such arrangements that shop owners may occupy some alternative space.The personal need may be genuine in maximum 1 per 1000 cases but in 999 cases the need would be a fabrication.
I would like to mention here that Rajasthan Rent Control Act 2001 is in force in Rajasthan since 2003 but this act is shame on part of the legislature as its preamble starts as "An act for control of eviction " whereas not a single clause provides control.
vijay wadhwa (advocate) 13 July 2011
yes, u can get ur property vacted from by filing eviction petition on your bonafide need irrespective of its nature whether it is commercial or residenital, as u are unemplyed u got good caseffor commercial propery
kamna (PR) 13 July 2011
What is the proceeger to file a petition? some says no benefit coz of long case timings.some says decision will come in only 1 yr.. also telll me about supreme court judgement of may,2011. i want to know deeply. m not advocate but as a common person i need help to know it deeply for further process...
B.K.GUPTA... (ADVISOR) 13 July 2011
If you really need space for yourresidence /business you should calculate the bonafide need and select the portion you require and then file a case for eviction and the court would surely appreciate your need and you will get the possession.
But if the only reason is the nominal rent you are receiving ,then you file the case for increase in rent only.
Before filing the suit you should send a notice for whatever action you choose.