INTRODUCTION TO THE MAHARASHTRA RENT CONTROL ACT, 1999
What is “rent control” ?
The practice of imposing a maximum (rent ceiling) upon the rent in a
particular housing market, below the equilibrium rent is called rent control.
The common thread running through Rent control Act and legislations is that
they are intended to serve two purposes :
1. To protect the tenant from eviction from the house where he is living
except for defined reasons and on defined conditions;
2. To protect him from having to pay more than a standard rent.
RENT CONTROL LAWS IN MAHARASHTRA
The Maharashtra Rent Control Act, 1999 came into force w.e.f.
31/03/2000.
Before enactment of this New Act, the state of Maharashtra appointed
Rent Enquiry committee i.e. Tambe Committee.
The recommendations of Tambe Committee were considered by
Maharashtra Law Commission.
Prior to enactment of this Act, three Acts were prevailing in the State of
Maharashtra to govern the matters pertaining to tenancy dispute i.e.
1. Bombay Rent, Hotel and Lodging House Rent Control Act for
Bombay Region.
2. The Central Provinces and Berar Act was prevailing in the area of
Vidarbha and
3. Hyderabad House (Rent, Eviction and Lease) Control Act 1954 was
prevailing for Marathwada Region.
This Act has been enacted to unify, consolidate and amend the law
relating to the control of rent and repairs of certain premises and of
eviction and for encouraging the construction of new houses by assuring a
fair return on the investment by lands and to provide for matters
connected with the purpose aforesaid.
Preamble
The preamble to the Rent Act spells out the broad policy and purpose of the
statute. From the preamble it is clear that the Act is enacted mainly for :
i. controlling rents so that they may not exceed beyond the standard rent
or the fair rate, as the case may be,
ii. regulating the repairs of the premises which may be or are demised
and
iii. for encouraging the construction of new houses by assuring a fair
return on the investments and to provide for the matters connected
with the purposes aforesaid.
WHY THE NEW LEGISLATION ?
Many features of the old rent control laws had outlived their utility. The task,
therefore, of unifying, consolidating and amending the rent control laws in
the State and to bring rent control legislation in tune with the changed
circumstances, had been engaging the attention of the Government.
Government had, therefore, initially appointed the Rent Act Enquiry
Committee, generally to study and examine and to make recommendations
to Government with respect to unified legislation if considered desirable and
feasible or otherwise to suggest modifications in the existing three rent
control laws. The Committee, had in its report, recommended that there
should be one unified Act which should extend to whole of the State and for
that matter the Committee had also appended a draft legislation to its
report. The State Law Commission which was functioning for some time had
also examined the three rent control laws including the report submitted,
and the draft legislation prepared by the Rent Act Inquiry Committee. The
State Law Commission has also attempted unification and revision of the
rent control laws and in its twelfth report on the unification of Rent
Restriction Laws, it has recommended to enact a unified and consolidated
Rent Act for the entire State. The state Law Commission has also appended
to its report a draft legislation. The draft legislation prepared by the state
Law Commission is generally on the pattern of the Bombay Rent Act, but
the thrust given by the Law Commission has been in respect of exemption
of new construction from the operation of the provisions of rent law for a
specified period and that there should be a provision for periodic increase
in the rent.
APPLICABILITY
This Act shall apply to the premises let for the purposes of residence,
education, business, trade or storage in the areas specified in Schedule
I and Schedule II of the Act.
This Act defines premises under Section 9 which includes garden,
ground, garage and out houses if any appurtenant to such building or
part of the building any fitting affixed to the building or part of building
for beneficial enjoyment, but does not include farm building, room or
other accommodations in hotel and lodging houses.
This Act is also applicable to premises let or given on licence to
government or local authority. But, there is exemption of certain
premises under Section 3 of the Act.
EXEMPTION
As per Section 3 certain premises are exempted i.e.
i. Premises belonging to Government or local authority or
Government as tenant, licensee.
i i . Premises let or sub let to banks or any Public Sector Undertaking or
any Corporation established by or under any Central or State Act.
i i i . Foreign Mission,
i v . International Agency,
v. Multi National Company and
vi. Private Limited Company and
vii. Public Limited Companies having a paid up share capital of Rs. 1
crore or more
are exempted from application of this Act .
