New rent law draws protests

Mumbaikars are not too happy about the state government’s decision to charge rent according to the prevailing market rates for residential tenants living in above 860 sq ft and commercial tenants above 540 sq ft, both under the erstwhile ‘pagdi system’.

Several NGO’s and associations have said that this move will compel residential tenants to pay 250 times more rent than the current rent and commercial tenants 500 times more.

The amendment to the Maharashtra Rent Control Act, 1999 was done with a view to move towards Centre’s draft Model Tenancy Act. The amendment of the act was strongly opposed by citizen groups and civic activists back in 2015.

“Retail shop owners in areas such as Breach Candy, Parel, Colaba or Linking Road who are paying say a rent of '800 to the landlord will have to pay '2 lakh to 4 lakh as rent if it is charged according to the prevailing market rate,” said Viren Shah, president, retail traders welfare association federation.

“Similarly, a resident of a tenanted flat of 1,000 sq ft in Cuffe Parade, Marine Drive, Walkeshwar, Worli who are currently paying a rent of '300 to '800 will have to pay between '75,000 to '2 lakh, a month after the act is amended,” added Mr Shah.

The reason given by the state government to amend the act is that it has given an undertaking to the Centre that while adopting the Centre’s ‘Housing For All’ scheme it will incorporate provisions of the draft of Centre’s Model Rent Control Act in the state’s Rent Control Act.

Janhit Manch, NGO, has written a letter to the Union ministry of urban development, stating that the Centre’s draft Act that the Maharashtra state wants to be incorporated within its Rent Control Act will benefit the powerful landlord and builder lobby in the city and also the country as a whole.

“Almost 4,000 hoteliers will be affected in South Mumbai once the rent for commercial tenants is increased,” said Adarsh Shetty, president, AHAR (Association of Hotels and Restaurant).

Like-minded people from the retail trade welfare association federation, AHAR, tenant associations and civic activist Chandrashekar Prabhu will conduct a meeting to decide the further roadmap to protest the controversial amendments.