Cabinet nod to repeal Rent Act,new law on the anvil

“In-principle approval was given for withdrawal of the (rent) Bill,” Information and Broadcasting Minister Manish Tewari said after the Cabinet meeting on Thursday.

The Union government had sought to the replace the 1958 Act with another legislation in 1995,which was not even notified after tenants staged protests across the capital.

Sources in the Union Urban Development Ministry said the new Act would be more balanced — favouring neither landlords nor tenants — as compared to the 1958 Act,which many believed was more in favour of tenants.

The new Act is expected to be ready within four years after extensive consideration with all stakeholders.

“The new Act will also link rents to inflation in order to balance the interests of landlords,tenants and reduce the number of court cases related to rental disputes,” a senior official said. The decision may also have political connotations with Delhi going to polls later this year.

Senior politicians maintained that a majority of Delhi’s population lived in rented accommodation. “After decades under the pro-tenant 1958 Act,the 1995 Act favoured landlords. The Cabinet’s decision also means the 1995 Act will never be implemented,which will come as relief to tenants in Delhi,” a senior politician said.

He said the decision would also hold sway during the 2014 Parliament elections. The move has also found support from the Confederation of All India Traders (CAIT).

Members of the organisation said the move was a result of a “fight” that has lasted for nearly two decades.

“For the past 18 years,we have fought against the provisions of the Delhi Rent Act and have been demanding amendments to protect traders and tenants from eviction from their current business places on the frivolous ground of ‘bona fide need’,” CAIT General Secretary Praveen Khandelwal said.

Khandelwal said CAIT wanted an expert panel set up to ensure that a “balanced act” was framed.

“This expert panel should consist of senior government officials and representatives of traders,tenants and landlords so that all parties are on board. Of the 10 lakh traders in Delhi,five lakh work out of rented spaces. These businessmen cater to over 20 lakh people and so the Act is important,” Khandelwal said.

Delhi Pradesh Congress Committee president J P Agarwal also welcomed the decision to withdraw the Delhi Rent Act,1995.

Agarwal said the Bill,passed several years ago,had not been implemented,and by withdrawing the same,justice has been done to the people of Delhi as a majority of the people were opposed to the Bill.