MUMBAI, DECEMBER 22: The Mahrashtra Rent Control Bill which was passed in the Legislative Assembly on Tuesday has been welcomed. The Maharashtra Rent Control Bill, 1993, providing protection cover to the tenants in the State, was passed unanimously, with an amendment in the Legislative Assembly on Tuesday. The bill was passed last week in the Legislative Council.The Bill, which provides for four per cent hike in the rent every year, was passed earlier by the legislative council with an amendment. Pradyuman Mehta of Congress moved the amendment in section 3(1) (b) that the rent cover would not be applicable to the companies with paid up share capital of Rs one crore and above. Earlier, the companies having above Rs one crore share capital were under cover of the Rent Act, he added.The Bill was introduced by Nawab Malik, Minister of State for Housing with a view to unify, consolidate and amend the law relating to the control of rent and repairs of certain premises, and eviction and encouraging construction of new houses by assuring a fair return on the investment by landlords and to provide for the matter connected with the purpose.The Bill provides for four per cent annual increase in standard rent, legalising of pagadi system and continuation of the tenancy right to the legal heir. It also provides for three months imprisonment or Rs 5000 fine, if the landlord hikes the rent beyond the permissable limit.In this case, the landlord is required to give a receipt of the rent taken within a fortnight. If he fails, he will have to pay the fine at the rate of Rs 100 per day.The tenants will not be needed to seek the no objection certificate for undertaking the internal repairs of the house. The landlord will also be required to enter into an agreement with the tenants after the new act comes into effect. The amendment adopted by the House also incoporates provision for withdrawing the Rent Control Act's covers of companies with the paid up share capital of Rs one crore and above.Former Member of Parliament and President of the Mumbai Regional Congress Committee Murli Deora said that it is a major achievement for the tenants and an important promise fulfilled by the state government. He said that the legislation comes as a major relief to lakhs of anxious tenants in the State, particularly in Mumbai.Welcoming the new Bill Anil Goenka, Chairman, Federation of Old Buildings Co-operative Housing Societies said that the increase in rent was by and large reasonably good. He felt that there should have been a proportionate percentage fixed on transfer charges.
