Clarification on increase in rent as per Rent Control Act

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According to section 11 of Rent Control Act, 1999 Increase in rent annually and on account of improvement, etc. special addition etc. and special or heavy repairs.

(1) After the commencement of this Act a landlord shall be entitled to make an increase of 4 per cent per annum in the rent of the premises let for any of the purposes referred to in sub-section (1) of section 2.

Explanation.-For the purposes of this sub-section, the period of one year on completion of which rent shall be so increased shall be computed from the date of commencement of this Act.

(2) A landlord shall also be entitled to make such increase in the rent of the premises as may be reasonable for an improvement or structural alterations of the premises which has been made with the consent of the seventy per cent of the tenants given in writing.

Explanation-In this sub-section, improvements and alterations do not include repairs which the landlord is bound to make under sub-section (1) of section 14.

(3) (a) Notwithstanding anything contained in sub-section (2), but subject to the provisions of clauses (b) and (d), a landlord shall further be entitled to make an increase in the rent of premises by an addition to the rent in the manner prescribed of an amount not exceeding fifteen per cent per annum of the expenses incurred on account of special additions to premises or special alterations made therein or additional amenities provided for the premises or on account of improvements or structural alterations made under sub-section (2) after the commencement of this Act.

Explanation.-For the purpose of this clause, the expression "expenses incurred" in relation to the execution of any work specified therein, means the total cost incurred therefor as certified by the municipal authority or an architect from a panel of architects notified by the State Government for the purposes of this Act.

(b) Before making any increase under clause (a), the landlord shall obtain a certificate from the municipal authority that he was required by it to make or to provide such additions, alterations, improvements or amenities and has completed them in conformity with its requirements.

(c) If a landlord, when required by a municipal authority to execute the work of any such addition, improvement, alterations or amenities, fails to do so, the tenant or the tenants interested in such work may seek the approval of the municipal authority for executing such work. The municipal authority shall grant the approval, unless other measures are taken by it to execute the said work. While granting the approval, the municipal authority shall specify the nature of the work. Upon such approval being granted, the tenants shall be entitled to execute the said work and the expenses incurred for such work shall, for all purposes, be binding on the landlord. The tenants shall also be entitled to deduct amount of expenses incurred for such work from the rent which from time to time becomes due by them to the landlord or otherwise recover such amount from him :

Provided that, where such work is jointly executed by the tenants the amount to be deducted or recovered by each tenant shall bear the same proportion as the rent payable by him in respect of his premises bears to the total amount of the expenses incurred for such work :

Provided further that, the total amount so deducted or recoverable shall not exceed the amount of expenses incurred for such work.

Explanation.-For the purposes of this sub-section,-

(a) the expression "municipal authority" includes,-

(i) in the case of any Municipal Corporation, the Municipal Commissioner or any officer of the Municipal Corporation authorized by him in this behalf;

(ii) in the case of any Municipal Council, the Chief Officer of the Council; and

(iii) in the case of any Cantonment, the Executive Officer of the Cantonment;

(b) the expression "expenses incurred for such work" means the total cost as certified by the municipal, authority or an architect from the panel of architects notified by the State Government for the purposes of this Act.

(d) In respect of any work executed by the tenants under clause (c), and where the total amount of the expenses incurred for such work is deducted or recovered by the tenant or tenants, as the case may be, in accordance with the provisos thereto, the landlord shall be entitled to make the increase permitted under clause (a) ; and such increase of rent shall be payable from the month following the month in which such total amount is so deducted or recovered.

(4) (a) The landlord shall also be further entitled to make, on account of special or structural repairs made by him in accordance with the provisions of this sub-section a temporary increase in the rent of premises by an addition to the rent, in the manner prescribed at a rate not exceeding twenty-five per cent of the standard rent; and the increase of rent shall be payable from the date of completion of the repairs till the amount of the expenditure for such repairs is recovered from the tenant.

Explanation.- Nothing in this sub-section shall apply to the structural repairs to buildings carried out by the Mumbai Repairs and Reconstruction Board under Chapter VIII of the Maharashtra Housing and Area Development Act, 1976.

(b) Before making any increase under clause (a), the landlord shall obtain in the prescribed manner and in the prescribed form, a declaration from the prescribed authority or a certificate from an architect from a panel of architects notified by the State Government for the purposes of this Act, asserting that it is necessary to undertake such repairs and specifying the nature and extent of repairs required and the estimated cost therefor, and after such repairs are carried out, the landlord shall also obtain, in the prescribed manner and in the prescribed form, a certificate from such prescribed authority or such architect confirming that the repairs were carried out in accordance with the declaration or as the case may be, the certificate aforesaid and fixing the date of completion of the repairs and the actual expenses therefor.

(c) The increase in rent under clause (a) shall be recoverable from all tenants, occupying premises in the building on the basis of the actual expenses incurred as specified in a certificate from the municipal authority or the architect as aforesaid and the amount to be recovered from each tenant shall bear the same proportion as the rent payable by him in respect of his premises bears to the total amount of actual expenses together with interest as aforesaid.

Advocate Siddhant Sharma LawRato