NEW DELHI: After waiting for decades, owners of prime properties across the country, particularly New Delhi and Mumbai, can soon expect relief by getting market rent from their tenants who have been paying amounts fixed over six decades ago.
The housing ministry is finalizing a model tenancy Act, which will be applicable to the present tenants, one year after its enactment by the state governments.
“They will continue to pay the present rent for one year and subsequently they have to sign new agreement specifying the monthly amount and the period for such contract. These agreements have to be submitted by both the parties to the rent authority, which will be established by the states,” a government official said.
Since rent control is a state subject, the model tenancy Act will be the basis for the states to come up with their own laws. Aligning their rent control laws with Centre’s model Act is one of the mandatory provisions for states under the ‘Housing for All’ scheme. The process of coming out with a model Act had started in March 2011, but now after several rounds of consultations, the draft is set to be put up before the Union Cabinet for approval.
The model Act is also aimed at unlocking existing properties — both residential and commercial space– for rent. “Efforts have been made to balance the responsibilities of both the landlord and tenant. Another focus area is faster adjudication,” said a source.
It has provisions limiting the security deposit to maximum of three months and the landlord has to refund the entire amount within one month of the termination of the agreement.
Credits Times of India