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This is an archive article published on March 23, 1999

Bill to extend Rent Act introduced in Maharashtra Assembly

MUMBAI, March 22: A Bill to extend the duration of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, by a year was intro...

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MUMBAI, March 22: A Bill to extend the duration of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, by a year was introduced in the Maharashtra Legislative Assembly by Minister of State for Housing Raj Purohit today.

The present interim Act lapses on March 31, 1999, making an extension necessary. Today’s Bill extends the Bombay Rent Act as it is to March 31, 2000.

The Supreme Court in December 1997 had directed the state to frame a new, fair and reasonable Act for the entire state. The court declared that the existing provisions of the Bombay Rent Act relating to the determination and fixing of standard rent were no longer considered reasonable. However, the state is yet to present a report of the joint select committee set up last year to draft a new Bill.

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The state government had suggested legalisation of the pugree system and compulsory registration of every tenancy agreement, even sending across a draft ordinance incorporating these changes to New Delhi for the Centre’sclearance just ahead of the Budget session.

The proposed ordinance also suggested that new tenancies in post-1987 built buildings and companies with a paid up capital of more than Rs 1 crore be freed from the Rent Control Act.

According to Maharashtra Chief Minister Narayan Rane, however, though Union Home Minister L K Advani had approved the amendments, the clearance was given just a day before the Budget session began.

The state government now feels that the proposals need to be discussed further, taking into account the consequences of these changes which will be done by the joint select committee.

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