Loading...

Know Everything About the Maharashtra Rent Control Act

Samira Malhotra 26 Apr 2024 1,922 Views
Knowledge Investment

Maharashtra Rent Control Act, 1999

Every state in India has its own version of the Rent Control Act. This act is essential to government rules and regulations for leasing homes. The Rent Control Act of Maharashtra also known as the Maharashtra Rent Control Act 1999 is applicable to the entire state. The act has made many changes and amendments to the Bombay Rent Control Act.

The first law or act for rent in India was launched by Bombay's presidency in 1915. The Bombay Rent, hotel, and lodging house Rates Control Act 1947 changed this act. The final act that was introduced in 1999 was the Maharashtra Rent Control Act. It replaced all the past acts to regulate the market of rental housing in the full state. The Maharashtra rent control bill was passed in 1999 by the legislative council as well as the legislative assembly. There were three rent control laws in the state which were unified by this final act. According to this act, a landlord has various responsibilities to maintain the entire commercial or residential building. 

What Duties of the Landlord and Tenant under the Maharashtra Rent Control Act?

  • Rent: The landlord of the property has the right to decide the rent amount. The rent should be increased by 4% rate every year from the date of the act's commencement. The rent can also be increased by 15% every year for alterations and improvements with written consent. In addition, the landlord can further increase the rent by 25% for specific repairs that are carried out under the Maharashtra Housing and area development authority act

  • Rebuilding: There are various conditions to fulfill for the purpose of rebuilding. Subsection 6 of the rent control act mentions the provisions and rules for rebuilding. The landlord must have sufficient funds to carry out the procedure for rebuilding. The municipal authorities should approve the planning for rebuilding. The number of residential units should be more in the new building than the number of residential units in the old building. The old building should be demolished within 3 months and the construction of the new building must be completed within 15 months. The carpet area of the old building, as well as the new building, should be the same. 

  • Repairs: The premises of the property or the building should be kept in good condition according to the Maharashtra Control Act, 1999. A notice of 15 days is given to the landlord if the repairs of the premises are neglected. Moreover, if the landlord refuses to make repairs after the notice then the talent is eligible to do so. The repairs can be made by the tenant. The expenses of repair can be reduced and deducted from the rent amount or paid otherwise. The amount of recovery should not be more than one-fourth of the rent amount that is paid by the tenant every year. 

Penalties Under Maharashtra Rent Control Act

In the localities where the Rent Control Act Maharashtra is applicable excessive charging of rent is not applicable. In other words, it is illegal to charge rent more than the standard amount. Such offense is punishable in Maharashtra with penalties and imprisonment. The imprisonment is applicable to the landlord or required person for not more than 3 months. The fine or penalty is also charged to the required person for 5000 rupees maximum. Both imprisonment and penalty can also be charged. 

Eviction Rules Under Maharashtra Rent Control Act

Section 16 (1) of the Maharashtra and Control Act States the provisions for eviction. The landlord can recover possession of subjects as per provisions mentioned under section 25. It states that the landlord can only get possession or recover the position of premises if the court is satisfied with it. In other words, if the premises are authentic as well as reasonable for the court then eviction is possible. In addition, the possession of premises or property can also be recovered by the landlord if the tenant built a permanent structure without the permission of the landlord on that premises. If anyone living with the tenant or the agent and servant is found guilty then the landlord can recover the premises. If the tenant is convicted of the property due to unauthentic or illegal purposes then he can be found accountable. 

Conclusion

The Government of Maharashtra passed the Maharashtra rent control bill in 1999 to regulate rental housing. This act provides rules as well as provisions for both landlord and tenant related to rental housing and rebuilding. The Maharashtra and Control Act of 1999 came into force on 31st March 2000. The main aim of this law is to consider and unify rental housing in the state of Maharashtra. The act also ensures and encourages people to construct new houses with a fair investment return by landlords. It also reduces the chances of illegal rent charging or more rent charge than the standard amount. If people are aware of the rules and regulations of this law then they can easily charge penalties on the landlords charging exceeding rent. There were three previous acts before the Maharashtra Rent Control Act which were replaced by it. These acts include the Central Provinces and bearer regulation of the Letting of accommodation act 1946, the Hyderabad Houses Control Act 1954, and the Bombay, Rent, hotel, and lodging house Rate Control Act 1947.

FAQ
Q. What are the duties of the landlord and tenant under the Maharashtra Rent Control Act?

The position of premises of a residential building or commercial building cannot be taken back by the landlord as long as the tenant is paying and ready to pay the rent. 

Q. When was the Maharashtra Rent Control Act passed?

The Maharashtra Rent Control Act was passed in 1999 as the Maharashtra Rent Control Bill. The Maharashtra Rent Control Act came into force on 31st March 2000.

Q. How much is the penalty for charging excess rent?

A maximum penalty of 5000 is charged to the landlord for charging access rent to the tenant. 

Q. Is Maharashtra Rent Control Act valid after the Model Tenancy Act?

The provisions as well as the regulations of the Maharashtra Rent Control Act are still valid across the state. Even though the government has also launched the model tenancy act 2021, the Maharashtra Rent Control Act still stays in shape.

About Author

Samira Malhotra

With 5+ years of experience in real estate industry, I have been writing on property market trends, news and analytical articles to help homebuyers and investors navigate the complex world of real estate. I have expertise in residential and commercial real estate and gives reliable advice on everything related to property market investments.

With 5+ years of experience in real estate industry, I have been writing on property market trends, news and analytical articles to help homebuyers and investors navigate the complex world of real estate. I have expertise in residential and commercial real estate and gives reliable advice on everything related to property market investments.

SUBSCRIBE NEWSLETTER
Post Blog