With an eye on making the archaic Delhi rent control laws more people-friendly, the government plans to bring a new comprehensive law that will link rentals to inflation rates and allow landlords to evict tenants for the latter's genuine requirement.
To prepare the ground for the new law, the Union cabinet will consider a proposal to repeal the Delhi Rent Act of 1995 (DRA) and withdraw the Delhi Rent (amendment) Bill of 1997. While the DRA was never implemented, though it was passed almost 18 years ago, the Delhi rent amendment bill is still pending before the Rajya Sabha.
Sources said the government wants to bring a fresh comprehensive legislation to balance the interests of landlords, tenants and reduce the number of legislations related to property rental disputes.
In a bid to fix a ceiling for rents, the government may link rentals to prevailing inflation rates. This, official sources claimed, will help both landlords and tenants. While the landlords would be able to get rents at higher rates, especially in cases where premises are occupied over decades and tenants continue to pay archaic rates, the tenants will not be subjected to the whims of the landlords.
The new law will also make clear provisions under which a landlord can evict tenants for his own bonafide requirements.
Traders, however, feel the consequences of this law will be far reaching. "If the tenants are paying small amount as rent there is a reason behind that. Lakhs of people will be affected if a law is made without taking the interests of the shopkeepers into consideration. We have also offered several proposals to the Union government so that the interests of both the owners and the tenants are served," said Atul Bhargava, vice-president, Delhi Rajya Vyapar Sangathan -- an umbrella body of market associations.
Suggested headline option: Govt planning new rent law for Delhi