Deora, a former Union minister, demanded the state government to oppose the proposed legislation when the draft is circulated.

Mumbai: Union finance minister Nirmala Sitharaman announced during the Budget presentation that the draft of the model tenancy law will be finalised and circulated to the states soon. The current tenancy laws are “archaic” as they do not address the relationship between the lessor and the lessee fairly, she said. This has come as a concern for many people living in tenanted buildings in Mumbai.

The proposed law is being opposed by Mumbai Congress chief Milind Deora saying that it seeks to do away with the State Rent Act and is anti-tenant.

Mr Deora, a former Union minister, demanded the state government to oppose the proposed legislation when the draft is circulated. The draft Model Tenancy Act, 2015 seeks to scrap the State Rent Act and allows landlords to charge the rent they want, giving them “undue advantage” over the tenants, he said.

However, the housing experts defer to this opinion. Advocate Vinod Sampat, president of Co-operative Housing Societies Welfare Association said, “Leave-and-licence is always regulated by demand and supply market process. You are at mercy of renter thus, one will take over only if it suits the budget and the new law has nothing to do with it”.

“The government will also introduce more premises for rental purpose. It is demand and supply, thus if housing stock will increase the price will decrease. Now across the world, the tendency is to live on licence, which is must cheaper rather than buying a property. The younger generation’s focus is shifting and the new law is acceptable,” Mr Sampat added.

Former Bharatiya Janata Party (BJP) MP Kirit Somaiya said, “There are many unsold accommodations available in metro cities. The new generation is opting for rental accommodation. At present two types of rental guidelines exist one for short term and the other is the old Tenancy Act existing before 1947. The BJP and the government is equally concerned about tenants staying in old buildings since decades and the new generation.”

“Simultaneously, we will have to be flexible so that the vacant premises can be rented. The new law will be customer friendly,” he added.