SC plea questions 30-yr delay in operationalising Delhi Rent Act of 1995

The Supreme Court has asked the Centre to explain the 30-year delay in enforcing the Delhi Rent Act, 1995, despite presidential approval.

New Delhi

The SC posted the matter to March 9. (Archive)

The Supreme Court has sought the Centre’s response on a petition questioning a delay of over three decades in operationalising the Delhi Rent Act, 1995, as the central government has failed to issue an official notification despite presidential clearance in August 1995.

Issuing notice on a petition filed by one Shobha Agarwal, a bench of justices Rajesh Bindal and Vijay Bishnoi, in an order on January 7, posted the matter for further consideration on March 9.

As the 1995 Act is yet to be enforced, the law relating to landlords and tenants is governed by the Delhi Rent Control Act of 1958. Agarwal stated in her petition that the 1995 Act was passed by Parliament and got the Presidential assent on August 23, 1995.

The petition questioned how a legislation passed by Parliament could be kept in abeyance for over 30 years, defeating the legislative will behind passing such a law to balance the rights of landlords and tenants and eroding the rule of law. “Expeditious implementation of Acts passed by the Parliament is a constitutional obligation of the government and a fundamental right of the citizens under Articles 14 and 21 of the Constitution of India,” the petition read.

The 1958 Act led to freezing of rentals at historic levels and only properties having rental of ₹3,500 or lower were covered under it. The law also provides extension protection to tenants, as under Section 6A, landlords could not evict tenants except in cases of bona fide need or subletting of premises by the tenant. It also depressed property values and adversely affected the revenues of municipal bodies.

Under the 1995 Act, modifications were made to fix rent. Under Section 6 of the Act, landlords are allowed to increase rent based on the annual inflation rate related to wholesale price index (WPI). The Act balances the interests of landlords, who would get better value for their property.

Agarwal, a lawyer by profession, who appeared in person, pointed out that the non-enforcement of the 1995 Act goes against government’s own policy as the central government has repeatedly circulated Model Rent Acts, first in 1992 and subsequently in 2015, 2019, 2020, and 2021, and linked it to incentive-based schemes, such as Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Pradhan Mantri Awas Yojana (PMAY).

“In Delhi the anachronistic Delhi Rent Act, 1958 continues to be in force because of the executive’s failure to implement the Delhi Rent Act, 1995,” Agarwal said, adding that several states have enacted the reformed tenancy laws after the 2021 Model Tenancy Act was approved by the Union cabinet.

The petition urged the court to direct immediate commencement of the Act and implement the provisions of the Act with retrospective effect. The petitioner also sought guidelines to be laid down to ensure future legislations do not suffer similar fate on account of “legislative paralysis”.

Following the passage of the law by the Parliament, there were subsequent events as the Delhi Rent (Amendment) Bill, 1997, which was introduced in the Rajya Sabha. The Bill was referred to a Parliamentary Standing Committee which submitted its report in December 2000 suggesting modifications. The recommendations were accepted but the Bill was never tabled in the Rajya Sabha.

In 2004, a committee of the Rajya Sabha sought the passage of the Delhi Rent Act (Amendment) Bill, 1997. The committee noted in its report that a healthy precedent had not been set by deferring enforcement of the 1995 Act.

A petition was moved in the Supreme Court in 2003 by NGO Common Cause to give effect to the 1995 law but the court declined to entertain the matter.