2. WHAT IS RENT CONTROL? imposing a legal maximum (rent ceiling) Upon the rent Particular housing market
3. ORIGIN First time in US, in 1900s to check uninhibited rent increases and tenant eviction Need for rented house increased after World War II and with industrialization and corresponding urbanization Rent Control Acts, under various names were introduced. India’s 1st Rent Control Act: in Bombay in 1918: First World War
4. THE LEGAL ASPECTS OF RENT CONTROL Indian Constitution: “Housing” – State Subject Enactment: responsibility of each State Objects are similar To protect the tenant from eviction from the house where he is living except for defined reasons and on defined conditions; and To protect him from having to pay more than a fair/standard rent. Landlord has the right to evict the tenant, if He is guilty of certain specified acts landlord requires the house for his own personal occupation.
5. Grounds: Landlord can evict the tenant: The law relating to the landlord’s rights to evict the tenant can be found in the Transfer of Property Act, 1882. While a landlord can immediately start an action for eviction of a tenant on expiry of the notice of eviction under Section 106 of the Transfer of Property Act, 1882, He cannot start such an action where the rent control act applies, unless he can prove the existence of one of the grounds of eviction under the Rent Act.
6. EXEMPTION Properties belonging to the government • Any tenancy created by a grant from the Government in respect of the premises taken on lease or requisitioned, by the Government • Newly constructed properties for a period of ten years (in Delhi) from the date of construction. This period may vary from state to state. • Any premises, residential or other, whose monthly rent exceeds three thousand and five hundred rupees (in Delhi). The amount may vary from state to state. religious and ethnic institutions
7. TAMIL NADU RENT CONTROL LAWS The necessity for imposing control of rents and prevention of unreasonable eviction of tenants arose during the war period Rent Control Orders in the year 1941 Renewed until Legislature enacted the Madras Act XV of 1946. Act of 1946 was replaced by Madras Act XXV of 1949 In 1960, The Tamilnadu Buildings (Lease and Rent Control) Act,1960(XVIII of 1960) was passed
8. FAIR RENT Residential: 9 % of total cost of such building Non Residential: 12% of total cost of such building Total cost: market value of the site in which the building is constructed the cost of construction of the building the cost of provision of anyone or more of the amenities specified in the Act Fixed by the Controller on application made by the tenant or the landlord Cond…
9. Cannot be increased, but decreased Landlord shall not claim, receive or stipulate for the payment in addition to such fair rent – advance can be asked If not fixed: Agreed rent Landlord liable to give receipt for rent or advance
10. EVICTION Section 10 of the Act The right of eviction: Only on the reasons specified in the Act. Tenancies where the Act has no Application: Notice of atleast 6 months REASONS: Willful omission of payment of rent for more than 15 days after the rent fell due Subletting of the premises Unauthorized use of the building Has materially impaired the building or its value or utility Using of building of unlawful purpose Contd…
11. Nuisance Non occupancy for a period in excess of four months Unlawful denial of landlord's title to the building Landlord’s own use Effecting repairs of the building Creation of a new building Landlord is religious or educational institution Member of armed force
12.
13. T.Sivasubramaniam Vs. Kasinath (SC) Mere desire of the landlord to live separately from his father is not a valid ground for eviction of the tenant