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Rent Control Act | Company Vakil

Rent Control Act

The State Government has introduced and implemented the Rent Control Act for reinforcing of the property rental and banishment of tenant-related law. This act exerts on the fortification of fair return by the landlords on investments and averting unnecessary harassment of tenants. It is enacted on all the rental premises providing let for residence, business, education or for storing purpose.

This article provides detailed information about the rent control act.

Tenant Friendly Act

The act is mostly tenant friendly enacted by the State Government and comprises several conventions that safeguard the tenant from unnecessary rent increase and eviction. The tenants continue to pay the fixed rents regardless of the rise in inflation in the past and hence, the act is being misused.

This abuse or misuse of the act is the primary reason for the pervasiveness of leave and license agreement in India which are emerged for a period of eleven months along with the alternative to renew after the agreement has expired.

Fixation of Standard Rent – Rent Control Act

A fixed standard rent and authorized raise in rental each year are the included provisions in most of the rent control laws. For instance, if a tenant makes an application for affixing the standard rent or for defining the allowable increase in the Maharashtra Rent Control Act then the rental will be fixed by the court according to the act. The court has the authority to order the tenant for depositing the rental amount and use a part of it to pay the landlord the reasonable amount for rent or the increased due.

For the fixation of a standard rent and allowable rise according to the act, any tenant can easily indulge in a court intervene in the landlord-tenant relationship. As tenant friendly, most landlords fix the standard rent.

Eviction relief

There are many provisions opposing the eviction of a tenant from the premises in the rent control laws. If a tenant willingly pays the standard rent and the allowable increase then he cannot be dispossessed or evicted in Maharashtra. The landlord cannot initiate any suit against the tenant for recovering the possession of property till the notice necessitating the standard rent and allowable rise and the expiry of ninety days. The court is not at the authority to permit a judgment for the eviction if the tenant pays the standard rent and permitted increase in the court including 15% simple interest within ninety days of the service of summons.

The rent control act provisions have been misused and exploited by the tenants for the purpose of possessing the premises – long after the request to vacate by the landlord.

For more articles, visit Company Vakil.

 

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