What is the Rent Control Act of India?

Rent Control Act
Real Estate » What is the Rent Control Act of India?

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Rental laws in India

India is a diverse country with a multi-tiered economic and residential system. Crores of people do not own any residential property in the country, and thus have to rent homes owned by someone else. The relationship between the tenant and the landlord is complex and often handled privately. A majority of rental proceedings are done without any court agreement or enforceable contracts. Those who do get a rental agreement come under the purview of the Rent Control Act. 

Rent Control Act of India

The Central Rent Control Act of 1948 regulates the laws of renting property. The jurisdiction is set so that neither tenants nor landlords can be exploited by each other. Every Indian state has its own laws in this area, with minor differences in its interpretation and execution. 

The landlords and tenants of India are governed by the Rent Control Act. It is bifurcated into exclusive acts and is framed in accordance with both central and state governments. The rent law in India is enforced whenever real estate property is in question. Rent Control Act is implemented by state governments to consolidate laws relating to rental property.

The act encourages a fair transaction between the tenant and landlords. Through the act, a tenant can secure rights against undue harassment by the landlord, and the landlord can get guaranteed rights concerning their investment in the property. Although it has rights enshrined for both tenants and landlords, it is mostly regarded as a “tenant-friendly bill.”

Areas Not in Purview of the Rent Control Act

  1. Properties with a paid-up share capital exceeding 1 crore. 
  2. Properties sublet to PSUs, or corporations coming under the state/central act. 
  3. Properties lent out to international agencies and foreign companies. 

The Rental Agreement

The Rent Control Act in India is enforced by the rental agreement that’s signed between both parties at the beginning of their agreement. It is essential to have a rental agreement to warrant any intervention or relief from the court. Without the rental agreement, none of the parties can address their grievances. The two parties who sign the agreement must know the house rent rules in India and must agree to the terms and conditions of the agreement, which include the period of living, rent amount, and other important details. 

The agreement must be:

  • The rental agreement is a legal document that must be stamped and registered. 
  • The rental agreement must be dated and signed by both the tenant and the landlord. 
  • The rental agreement must keep a record of all the rectifications made throughout the years.

Rental Rights of Tenants & Landlords

Rights of a Tenant

1. Right to challenge unfair eviction:  As per the law, a landlord cannot evict a tenant without sufficient cause. The laws regarding reasoning differ for all states, but the baseline personalities remain the same. While some states, it is perennial to approach the court before making any claims, whereas some states accept that a tenant cannot be evicted if they’re willing to accept any change in the rent agreement.

2. Right to demand fair rent:  The landlord cannot charge an intoxicant rent from the tenant. The rent must be decided as per the valuation of the property. If the tenant feels that the amount being demanded is out of line, they can stake a claim in court.

3. Right to demand fulfilment of essential services: Tenants deserve the right to water, electricity, and sewage facilities in every house. The landlord cannot withdraw from these services, regardless of the circumstances. Landlords also cannot withhold these services if the tenant has failed to pay rent. 

Rights of a Landlord

1. Right to evict: Landlords hold the right to evict tenants after the completion of the lease or due to any personal and bona fide reason. The rights differ in each state, however, the reason remains the same. For example, wanting to occupy the home for themselves is a legal reason to demand eviction in most states but not Karnataka. Landlords must approach the court if an intervention is needed, and they must also serve the tenants sufficient notice before enforcing their eviction rights.

2. Right to charge rent: Landlords have the right to charge rent from tenants. Because there is no upper limit on rent in most places, the amount depends on the landlords and the market stipulation. The clause also covers cautionary rent and incremental change in the amount. The rent is always settled beforehand and goes into writing before enforcement.

3. Right to gain temporary repossession of property: The landlord has the right to repossess the property and bring forth necessary changes to the place, including its interior. Such changes, however, should not affect the living standards of the tenant or be in violation of the agreed-upon rental agreement.

Criticism of the Rent Control Act

Rent Control Act comes with major drawbacks, one of which is the disregard for raising rental prices with respect to inflation and market attitude. This is why many state governments have passed their own laws which override Central Act and are more in accordance with the current times. Indians who rent properties want protection against the cudgel of the landlord.

It is presumed that the party with multiple properties already has the edge over the party that has to rent. This is the rationale behind the act, which is liberal about the protection of the tenant. The act also has strong language against the unfair eviction of the tenant. As per the law, tenants have the upper hand in the rental agreement which gives them the benefit of the doubt. 

Summing Up,

Rent Control Act is the foremost law of the land regarding the rental agreements between tenants and landlords and is enforced in all cases bar a few exceptions. The act is the only governing statute for rental grievances in most cases. Furthermore, Indian states have passed several laws that contradict the central act, and such laws are enforced by the legislatures of the respective states. 

According to estimates, 65% of people living in urban areas around the world are tenants. This is also true in India due to the sky-high prices of real estate in the major cities and the large population of migrant workers who live there. Nevertheless, living as a renter can be a peaceful arrangement, but occasionally there are situations where one can run into rental problems and other connected issues, such as receiving an unauthorized eviction notice or the erratic behaviour of the landlord.

Are you, however, a renter who is experiencing such problems or simply curious about what to do if you ever find yourself in a similar situation? In that case, allow us to help you through this blog, which will briefly discuss about the several protections against landowner harassment.

What does illegal eviction of tenants mean?

An illegal eviction, also known as an unlawful termination of tenancy, typically happens when a landowner forbids a tenant from entering a rental property or removes the tenant’s belongings from the property through the use of force, intimidation, or other methods (such as cutting off utilities or changing the locks). However, if the landowners evict you without taking the proper legal action, they are breaking the law.

How Do You Respond When Your Landlord Forcibly Evicts You?

Almost every state has rental control legislation pertaining to tenant protection, and each state has established specific circumstances for which the landlord may lawfully evict the renter. Additionally, a tenant has a legal right under the law to appear in court and defend himself against unlawful eviction, and some of those accessible remedies for tenants are discussed below:

Grounds for eviction

Non-payment of rent, breach of the lease, property damage, and illegal activity are the most typical grounds for evicting a renter. The tenant must therefore review the provisions of the State Rent Control Act to ascertain the grounds for eviction specified in the Act. In addition, if the tenant is being evicted for any reason other than those specified in the Act—which is considered wrongful eviction—they must seek the help of an eviction lawyer and the enforcement agencies to halt this.

Suit for injunction

A renter might be unable to leave a property when asked to do so for a number of reasons, such as having a medical emergency or having his elderly parents live with him. When this happens, the tenant has the option to file a case in the appropriate court to obtain an injunction that will prevent them from being evicted for any other grounds (other than those listed in the State’s Rent Act). Along with the assistance of housing rental lawyers, the renter should take this action, if they are violently evicted without providing them with adequate notice.

Rent Controller

In the event that the tenant receives a notice of eviction on pretences, they should go see the rent controller of the relevant jurisdiction and explain why they believe the notice of eviction is invalid. Additionally, following the tenant eviction laws, the court will summon the tenant, who will then be forced to submit his or her case and the arguments supporting the necessary evidence.

Notice of rent payment

If the landowner claims that he has not received the required rent and lists this as the reason for serving the notice of eviction, the tenant may legitimately ask him or her to send the information to his bank account so that he can conduct the transaction and deposit the outstanding rent. Moreover, after agreeing to it, the landowner must give the tenant the information within 10 days of the date they received the notice.

Also Read: Lex Solutions – Your One-Stop Destination For All Things Legal

Steps that you must follow to legally evict a tenant in India

Because eviction laws differ from state to state, the following are typical recommendations for evicting a renter. Nevertheless, you can contact the tenants lawyer of Lex Solutions if you need any assistance.

Serve the Tenant With a Termination Notice

The tenancy must be terminated before a landlord can evict a tenant for cause, and the landowner shall provide the tenant with the required notice before taking legal action to do so. Three different kinds of termination notices are generally available:

  • Pay Rent or Quit: The tenant is required to pay the rent within a predetermined period (often three to five days) or leave the rented property.
  • Cure or Quit: A breach of the rental agreement or lease must be remedied by the tenant within a set amount of time.
  • Unconditional Quit: Without a chance to correct the offense or pay the rent, the tenant must leave the property.

But to evict a tenant without good reason, the landlord must give the renter a 30- or 60-day notice to leave the premises.

File an Eviction Lawsuit

If the renter does not correct the issue or quit the property within the allotted time, the landowner must initiate an unlawful detainer case in small claims court. Following this, landlords have the right to evict tenants by serving a legal notice to tenants to vacate their premises.

Wait for the Tenant’s Answer

Within the time frame given on the summons, the tenant may “answer” the complaint. The renter may, however, use the response to refute the charges or present a defence. And, for instance, a tenant might claim that the eviction was carried out in retaliation or that the unpaid rent was used to pay for repairs the landlord refused to undertake.

Receive a Judgment for Possession

A default judgment is granted to the landowner if the tenant ignores the eviction notice India. Moreover, the landowner is entitled to take ownership of the property if the renter replies with an answer but the court rules in his or her favor.

Remove the Tenant

Despite having the right to reclaim the property, the landlord is unable to evict a renter without the help of a law enforcement official. Nevertheless, the tenant will be informed of the legal eviction and the number of days they have to leave once such an official receives the judgment and the cost. Moreover, the law enforcement authority may physically evict the tenant if they don’t leave the property in the allotted period.

Also Read: Introduction To The Indian Judicial System And Court Hierarchy

Summing Up

Now that you are aware of the characteristics of evictions and how to deal with them in a nation like India, you must use them as needed. Additionally, as a landowner, you must evict a problematic renter per the law. And, to ensure that you are acting legally, consult a local landlord-tenant law attorney in your area. For such assistance, a legal firm in Chandigarh, lexsolution can offer you a one-stop solution.

FAQs

  • Can a tenant seek an injunction against the landlord?

According to the state rental rules present in India, a tenant does not have the right to issue an injunction against the landlord. Moreover, injunction procedures are always discretionary, and a court of law cannot grant a perpetual injunction in favour of the plaintiff against the right owner if the plaintiff is only a trespasser.

  • Can police evict a tenant in India?

Even if the renters behave disrespectfully, the police cannot assist in reclaiming the property. However, the only court with the authority to order the eviction of a tenant is the court of the rent controller under whose jurisdiction the property is located. 

  • When a tenant can get the benefit of protection against eviction?

If the tenant can show that the landlord gave his written approval to the subtenant, he is entitled to protection from eviction. Additionally, it disallows any other consent, including implied or oral permission.