Amendments to Delhi Rent Control Act (1958)
in 1997 (a piece of legislation violating the fundamental right of an
individual to property rights) has once again been put back. Strong
traders lobby (main beneficiaries of status quo) has successfully
capitulated the Urban Development Ministry. The Ministry has decided to
hold back the move of tabling it in the monsoon session of the Parliament.
The bill has been pending in Rajya Sabha for
8 years. Many owners are stuck with non-paying tenants due to this Act.
Sad and heart rending stories of how tenants moved in on nominal rents and
have become the owners of the properties abound. This bill had been passed
earlier by both sessions of Parliament and the President had given his
assent. Due to pressure from powerful tenant lobbies of Connaught Place,
Chandini Chowk and South Extension, the bill was notified ... a formality
for the passed bill to become law.
Common Cause, a NGO sought direction from
the Delhi High Court to the Govt. for notification of the bill. A
committee of Rajya Sabha, on the issue "Can the Executive delay the
enforcement of enactment passed by Parliament and assented to by the
President" considered it as setting a unhealthy precedent by the Govt. by
deferring the enforcement.
Tenants of these areas pay Rs. 5 to 10 per
month rental where as the prevalent rent in these districts are as high as
Rs. 450/- per Sq. Ft. In most of the cases, tenants are now taking
advantage of the bullishness in the reality market to illegally lease out
the properties of which they hold lease. The genuine owner is not being
given his due. The method employed is ingenious - using the franchise
route.
Delhi Rent Control Act in its current form
is the single reason why Delhi landlords prefer to give their places on
rent to foreigners. Foreigners go back, Indians stay on and use the Act to
exploit the owners. This is for properties where rents are lower than Rs.
3,500/- per month. Over Rs. 3,500/- the law is balanced but the sentiment
of good owner-tenant relationship has been systematically destroyed over
the past few decades by the use of this Act.
Generous donations to the political
parties election funds by the tenant trader's lobby ensures that
Government continues to deny its citizens the basic right to own and
dispose of properties. Issues like this are of concern to the big time
real estate investors as there is a lack of clarity. Govt. speaks
differently, acts differently. Mind you, these traders are not so big in
numbers, just well connected and very voluble.
by Sheikh Pervez Hameed ... 27/07/05
Delhi Rent Control Act - Read the Law
