Age-old low rents may soon end
Keeping in view the upcoming Delhi Assembly elections, the Union Cabinet on Thursday gave in-principle approval to withdraw the controversial Rent Act of 1958 and replace it with a new law under which rent in the national capital would be linked to inflation.
The 1958 act was sought to be replaced by an act in 1995 but that was not notified even after enactment because of a huge controversy with tenants up in arms over it.
“We will start a new exercise to frame the rent law after the withdrawal of the 1995 act. It will be ready in two-three years, after due consultation with all stakeholders,” a senior urban development ministry official said.
However, the official said, “The new law will be a balanced one — neither against the landlords nor against tenants. The existing one is pro-tenants. The provisions of the rent will be linked to inflation.”
The 1995 law was to replace the archaic 1958 act that protected the migrant population from arbitrary rent hikes by landlords. “In-principle approval was given for withdrawal of the (rent) bill,” information and broadcasting minister Manish Tewari told reporters here after the Cabinet meeting.
The issue of the Rent Act in Delhi has been stuck for the last 18 years because tenants have been demanding justice and conversion of the 1995 act into a balanced legislation.
According to the official, since the Delhi Rent Act is likely to affect rent laws of other states in the country, it requires detailed and careful consultation. The move assumes significance as the announcement is being made when the UPA government is getting battle-ready for the 2014 general election and the Delhi Assembly election which is due later this year.
The existing law, while giving protection to tenants, who pay paltry rents, was seen as serving as an instrument for harassment of landlords who became helpless and could not increase rents despite massive inflation.
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