All about the Act

Overview of Rent Control Act of Rajasthan

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This Blog is written by Anindo Chatterjee from Amity Law School, Noida. Edited by Prakriti Dadsena.

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“Rent control has in certain Western countries constituted, maybe, the worst example of poor planning by Governments lacking courage and vision.”

-Gunnar Myrdal

INTRODUCTION

Rent Control Acts are common throughout the country that is India. The primary reason for this is the impending threat of exploitation by the landlords which it’s been a thorn in the flesh for the authorities in addition to the tribunal. Without any regulation landlords might go on a rampage and exploit the life out of the tenants, other issue is tenants exploiting their landlords aka don’t take the occupants innocent harmless people (as it can be a common misconception) as some of them have a tendency to take advantage of their Landlords and commit a nuisance in the rented property and they might even not pay the designated rent on time. Many situations may arise such as when the landlord is old and infirm, the occupant may take undue advantage of the lack of visits of the landlord and might even carry out illegal activities at the rented place. These are a few examples of the numerous unwanted occurrences that might happen in a real-life lessor-lessee situation. The main focus of rent control acts to create a balance of convenience between the lessor and lessee, which means one who’s there in a more inconvenient position shall be granted relief. Most rent control acts across the country are more or less similar with slight variations, Rajasthan Rent ceiling Act is no different in any case, come let us look into the important provisions of the act that are also included in the syllabus of the Rajasthan Judicial services, hopefully, this article can be of some use for the young aspiring fiery minds.

BACKGROUND

The Rajasthan Rent Ceiling Act 2001 {hereinafter referred to as “Act”}, came into enactment on 1st April, 2003 with its extent to complete territory of Rajasthan. This act consists of seven chapters, 32 chapters and 1 schedule that is divided into 4 parts A, B, C, D. First chapter is the preliminary chapter (sections 1-5), the second chapter is the change of rent (sections 6-7), the third chapter is Tenancy (sections 8-10), the fourth chapter is Restoration of Possession illegally (sections 11-12), the fifth chapter is the constitution of tribunal and procedures (sections 13-22), recently added via 2017 is the chapter five (A) in relation to the appointment of rent authority (sections 22A to 22C) the reason why it’s been added as a chapter is due to the lack of applicability of the Rajasthan rent ceiling act and this act established the authorities to facilitate its applicability on the grass-root level and not merely a law dependent on paper and of less use. Chapter five (B) mentions certain circumstances (sections 22D TO 22G), chapter six mentions the amenities that must be provided to the tenant by the landlord because the tenant is paying a certain quantum of rent. Last but not least in any manner is chapter seven that mentions the miscellaneous part (sections 25-32). Now in the next heading let us look at the general overview of each of the chapters to try and extract the gist of the act.

OVERVIEW

Before going into the particulars of the vital provisions of the act, let’s get an overview of the act. Chapter 1 of the preliminary chapter focuses on the short title, extent and the usual things, but also mentions the important part of how the rent is to be decided and the mode by which it is paid. Chapter 2 of the act mentions the revision of the rent and how much rent is permissible to be increased. Chapter 3 relates to the tenancy and the rules and regulations which are to be followed by the tenant. Chapter 4 relates to the restoration of the possession illegally which means no unfair means shall be used to remove the tenant by the Landlord and only via legit means shall the tenant be deprived of his possession of the property. Chapter no. 5 mentions the usual constitution of the tribunal and what is the procedure to be used in a trial of this cause. Chapter 5 A is engraved into the Act in 2017 in order to ensure the implementation of the act and the aggrieved party doesn’t have to run to the tribunal every time a wrong has been done and its solution can be done at a much earlier and in an easier manner. Chapter 5 B mentions certain specific circumstances and what shall be done in those circumstances. Next comes Chapter 6 that mentions that certain amenities have to be provided to the tenant in lieu of the rent given by him to the landlord. Finally comes chapter no. 7 which mentions the miscellaneous provisions which provide some useful remedies, moreover these provisions are very useful from the competitive exam point of view of Rajasthan.

IMPORTANT PROVISIONS

Here I am mentioning only the provisions that I feel are important and their important points (reading with the bare act of Rajasthan Rent Control Act, 2001 to completely understand the act is recommended)

Section 1

Short title, scope, and start date

An important part of the section is its extent and actual applicability, it applies to the municipal limits and district headquarters in Rajasthan, which means that it doesn’t directly apply to the rural areas but can be applied by the state government via notifications.

Section 3

Many of the premises and tenancies are exempt from Chapters II and III.

It mentions that the act’s ch. 2 and 3 wouldn’t apply to a certain location that may be a bank, let out by the central government or the state government or any local body, any building let to any university by the law, any location meant to be used for religious purpose or educational trust and for certain other premises as mentioned in this section.

Section 5

Tenant rent payment and remittance

Settlement of the rental should be satisfied by the 15^th of every month unless otherwise agreed by the landlord and tenant in the rent agreement, and should be effected by choice of the methods such as cash, cheque or bank transfer.

Section 6

Renewal of the rent of the subsisting tenancies

It is related to the change of the rent over time and it has two distinct rules-

(1) It the property has been let out before the start of this act on 1^st January 1950 then the rent shall be a reason to a 5% yearly increase till a time of 10 years then such amount shall be merged and then after the 10-year period rent shall increase after merging the increased amount in the real rent quantum and increased till the date of commencement of this act

(2) Even after the commencement of this act on 1^st January 1950, a similar process is to be followed in increasing the rent by 5% up to 10 years and then thereafter merging it with the original rent and then increase by 5%

A similar process shall be followed as long as the tenancy subsists.

Section 7

Rent revision in the case of new tenancies

An equivalent process (as mentioned in Section 6) of increasing the rent by 5 % shall be followed even for a new tenant and then after 10 years that amount will be merged in the original rent and rent will be increased 5% thereafter.

In fact, any agreement for an increase of rent in excess of the designated 5% shall be void to the extent of an increase beyond the acceptable mark of 5%.

Section 9

Tenants’ eviction.

Eviction of the tenant cannot be done at whims and fancies of the landlord it can only be done in certain circumstances such as non-payment of the rent for 4 months, other things include damage caused to the property by the tenant, subletting without permission of the owner, the tenant has built any structure in the premises without the permission of the landlord.

Section 10

In certain circumstances, the landlord has the right to reclaim immediate possession.

The Landlord is liable to immediately recover possession in certain circumstances such as if he is or has been a part of the army, paramilitary and this petition is filed within one year of the retirement. It would also be applicable for a central, state, or local body employee.

A senior citizen can also get immediate possession of his property if he files the petition after expiry of 3 years of letting out the premises.

Section 14

Process for Rent Revision

Procedure for revision of rent is the filing of petition of revision of rent under S.6 and S.7 before the rent tribunal with proper documents and affidavits.

Section 15

The procedure for evicting a tenant

The process for eviction is complex as well, the land lord again has to file a petition before the Rent Tribunal, with the supporting affidavits and documents supporting the possession of the landlord.

Section 18

Rent Tribunal’s Jurisdiction

This section clearly states that the Jurisdiction of Rent Tribunal is eminent wherever this act is applicable and civil court does not have jurisdiction.

Section 22B

Agreements for tenancy.

It lays down that irrespective of the act, no house shall be rented without rent agreement between the Tenant and the Landlord. The landlord and tenant shall jointly communicate the terms of such agreement to the Rent Authority in the form listed in Schedule D.

Section 22C

Tenancy period

All tenure arrangements went into after the successful date of the Rajasthan Rent Ceiling (Amendment) Act, 2017 will be for the period settled upon by the landowner and occupant and indicated in the rental contract. Clause (2) says that the tenant may engage the landlord for reinstatement or continuation of the tenancy prior to the end of the tenancy period, within the period agreed to in the tenancy agreement, and if agreeable to the landlord, may enter into another occupancy concurrence with the property manager on commonly concurred agreements. Now the clause (3) lays down a very important rule that is If a fixed-term tenancy ends and is not renewed, or the premises are not vacated by the tenant at the end of such tenancy, the tenancy shall be deemed to be renewed on a monthly basis for a maximum of a half-year under similar agreements as the terminated occupancy understanding, and will from that point be considered to have lapsed except if restored by the landowner.

Section 22F

A safety deposit is required

As per clause (1) except when there is a written agreement to the contrary, it is legal for the landlord to charge a security deposit equal to one month’s rent.

Clause (2) further states that the security deposit shall be refunded to the tenant within one month of the tenant’s departure from the premises, after deducting any liability of the tenant.

Clause (3) elaborates even further that, if the security deposit is not refunded to the tenant within the time specified in subsection (2), the tenant may file an application with the Rent Authority requesting that the landlord refund the security deposit.

Section 23

The landlord is not permitted to discontinue or withhold the tenant’s use of amenities

Clause (1) states that no landlord, whether acting directly or through a third party, shall stop or withhold the amenities provided to the tenant in respect of the premises leased to him. However, with the consent of the Rent Authority and the Rent council, the property manager may end or retain any convenience. Will give such authorization on the off chance that it is fulfilled that the occupant has not paid the charges for the convenience, which he was obligated to pay.

Clause (2) further tells that on the landlord’s petition for permission to stop or on the other hand retain the conveniences, or on the inhabitant’s request for reclamation of the conveniences, the Rent Authority will give notification to the next party and, in the wake of hearing the gatherings, will pass such requests as it considers fit. or on the other hand retain the conveniences, or on the occupant’s appeal for the rebuilding of the conveniences, the Rent Authority will give notification to the next party and, in the wake of hearing the gatherings, will pass such requests as it considers fit.

Clause (3) finally concludes the section by stating that the Rent Authority may issue interim orders as it sees fit during the pendency of the inquiry under this section.

Section 24

Duties followed by the tenant and the landlord

As per clause (1) In the absence of any express agreement, essential repairs involving up to 5% of the annual rent shall be carried out by the tenant at his own expense, and essential repairs involving more than 5% of the annual rent shall be carried out by the landlord upon receipt of notice from the tenant:

Provided, however, that if the landlord fails to carry out essential repairs within fifteen days of receiving notice, the tenant may apply to the Rent Authority for permission to carry out the repairs, along with an estimate of the cost of such repairs, and if permission is granted by the Rent Tribunal, it shall also pass orders regarding the recovery of each cost from the landlord by deducting the rent to be paid by the tenant.

Clause (2) finally in this section states that the provisions of Subsections (2), (3), and (4) of Section 23 apply by changing things that need to be changed to the Rent Authority proceeding under this section.

ANALYSIS

If we analyze the Act overall then it is very easy to conclude that the Act is lopsided towards the tenants but recent trends have emerged that have made it clear that tenants are no saints and are almost evenly indulged in activities that may be harmful to the land lord’s property and to his possession hence more provisions should be included to include to protect the rights of the landlord thus to create a better tenant-landlord environment.

CONCLUSION

If we look in general, rent control agreements are always in favor of tenants. Rajasthan Tenancy Act is no different to the extent that most such Acts have been stated by legal scholars and jurists as an impediment to the success of the nation. However, I do not have that opinion entirely, I feel that with some tweaks in favor of the landlords and less dependence on the tribunal this Act can create a hospitable environment for the tenant-landlord relationship.