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New rent Bill for Bombay

A Bill amending the existing Rent Control Act has been passed by the Maharashtra legislative assembly. It restricts the increase in rent to just five per cent of existing rates in Bombay.

The Bill -- the Bombay Rents, Hotel and Lodging House Rates Control (extension of duration and amendment) 1998 -- was introduced by Housing Minister Sureshdada Jain.

It will come into force from March 31.

Accordingly, on the date of commencement of the Act, a landlord shall be entitled to make an increase of five per cent in the rent on premises let before the first day of October 1987.

Jain said the Bombay Rent Act, 1947, which applied to the metro as well as other cities and large towns in Maharashtra, would expire on March 31. The conditions requiring control of rents and protection from eviction of all protected tenancies covered by the Act continued to exist, he said.

"It is imperative the above rent control and protection against eviction continues in a just and fair manner. Otherwise there will enormous social unrest, social strife and disruption, causing serious threat to public order," he said.

Jain said the landlords as a class have made enormous gains because a substaintial number of tenancies have been transferred at premium or pugree. Further, they have utilised extra floor space index. Quite a few landlords have benefited many times over their original investment.

Jain hoped the amended Bill would protect the interests of both landlords and tenants.

UNI

EARLIER REPORT:
Bombay tenants protest against new rent act

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