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mkm   11 November 2017

Landlord asking to increase shop rent

We have a shop on rent since more than 100 years. Our rent increases by 20% every 3 years. But now landlord says that our rent is very less as compared to market value. So he wants to increase our rent by almost 20 times. Can he do so legally. My present rent : Rs 5000 Proposed rent : Rs.100000


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 7 Replies


(Guest)

Your query seem so be purely hypothetical academic query.

If some reality is there in your statement, can you please clarify the following points,--

(1) Are you more than 100 years old or your landlord is more than 100 years old or the building structure is of more than 100 years old?

(2) Further, if the landlord is demanding Rs, 1 lakh as rent, you may be having possession of a huge area of the constructed structure merely at a paltry sum of Rs.5,000/- and may be earning several lakhs of profit.

(3) By the way what is the date of agreement and at what rate of rent with which of your ancestor?

 

 

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Kishor Mehta (CEO)     12 November 2017

The increase in rent and your tenancy rights are governed by the prevailing Rent Act of the State of your residence.

mkm   12 November 2017

Dear Sir. It is not a hypothetical situation. But real situation. 1. The building is not 100 years old. Earlier it used to be made of wood. But in 1986 a RCC building was made in its place by landlord's father. 2. We are occupying around 600 sq. Feet of area. In 1986 an agreement was made between my grandfather and landlord's father to pay rent at Re.1 per sq.feet. with increment of 20% per 3 year. But now he is asking at around Rs.160 per sq.feet. Since big showrooms have opened in our area who are paying at this rate. However our is not a Showroom but a retail grocery shop and we don't earn in lakhs like big showrooms. 3. In 1986 an agreement was made between my grandfather and landlord's father however the same was not renewed after my grandfather expired. Again we don't have any copy of that agreement since only 1 copy of agreement was made which is with landlord.

mkm   12 November 2017

Sir we stay in Assam

(Guest)

Mr. MKM,

Although your problem is of serious nature or is likely to become so, but you seem to have preferred to rely on a casual help from the experts through your casual query. Of course, the demand of Rs.1,00,000/- as rent is quite unjustified.

However, for real solution to your problem, some information and documents of vital nature would be required to be examined in detail.

So, as of some auxiliary help, for the present I may suggest you to first get a copy of the agreement from the registration office, if the document was registered, through RTI. Besides other important information/document, terms of agreement are quite important to be examined for analysis for the purpose of solution to your problem After procurement of copy of agreement, you may discuss in detail with some prudent expert on property laws for further course of action.


(Guest)

If that be the position, as discussed by you, the amount of rent, even at the compounded rate of enhancement by 20%, what to say of simple rate, the rent may not work out to Rs.5000/-, as you stated.

Agreement terms are quite necessary to be examined for arriving at some appropriate opinion.

 


(Guest)

 

THE ASSAM URBAN AREAS RENT CONTROL ACT, 1972
 

This act may be applicable, I feel it is bit different as compared to Maharashtra rent etc. 
But in case of dispute Court can determine fair rent . 

It seems in that act there is a provision of a monthly increase of rent but I doubt it will be negligible the way it is calculated seems bit different and little confusing at first reading As other factors are required to be calculated as per the said act .

I will suggest you go for fixation of fair rent in Hon. Court ,
Contact local adv. 

 


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