Falt Owners Association welcome New Rent Act

MUMBAI, MARCH 11: The New Rent Act, which had come to force has been unanimously welcomed by the Flat Owners Association, Mumbai. In a press note, the association has systematically explained why the New Rent Act is beneficial for all.

The New Rent Act will reportedly not only protect the tenants, but will also give certain additional rights to landlords. The Act is historic as for the first time, under Section 55, it states that tenancy agreement will be compulsorily registered under the Registration Act of 1908. The onus of getting the tenant registered will now lie with the landlord, who will also have to abide by the terms and conditions of the registration. If the landlord contravenes the provisions, he/she shall be liable with imprisonment that may extend for 3 years or adequate amount of fine, or both.

The Act is also revolutionary as the landlord and his agent will get official amount for the purpose of construction of the new building and repairs, along with the reconstruction of old buildings.

The premium deposit, popularly known as the pagdi

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, has now been legalised with the introduction of this new Act, thereby making it easier to undertake the repair of old buildings. There are more than 19,500 buildings in Mumbai and about 5,000 are old and in dilapidated condition. Now the landlords and tenants will together generate funds for the specific repairs.

Also, under Section 31 of the New Act, it becomes mandatory for every landlord to give written receipt to the legal tenant, and to his family members following his untimely death. Failing this, he may be punished with a fine of Rs 100 for each day of default.