In a meeting of the action committee for the protection of tenants, Retail Traders’ Welfare Association Federation, Association of Hotels and Restaurant (AHAR), and civic activists, a resolution was p
In a meeting of the action committee for the protection of tenants, Retail Traders’ Welfare Association Federation, Association of Hotels and Restaurant (AHAR), and civic activists, a resolution was passed to protest against the state government’s decision to amend the Maharashtra Rent Control Act, 1999. Stakeholders at the meeting cited that the amendments are for a few, giving benefits to private landlords and the builder lobby.
The state government had last week announced that it would charge rent according to the prevailing market rates for residential tenants living in spaces above 860 sq. ft and commercial tenants in spaces above 540 sq ft, both under the erstwhile ‘pagdi system’.
For example, “Retail shop owners in areas such as Breach Candy, Parel, Colaba or Linking Road who are paying, say a rent of Rs 800 to the landlord, will have to pay Rs 2 lakh to Rs 4 lakh a month 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 Rs 300 to Rs 800 will have to pay between Rs 75,000 to Rs 2 lakh, a month after the act is amended,” added Mr Shah.
According to civic activist Chandrashekhar Prabhu, “The landlords currently already increase the rent four per cent every year and in the ‘pagdi system’ there cannot be a comparison with the market.” Various associations, along with civic activists are going to meet the chief minister and give a presentation on why it is unfair to amend the act according to what the state government had announced.
The state government has defended the move saying 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. “This move will compel residential tenants to pay 250 times more rent than the current rent and commercial tenants 500 times more. We will meet the chief minister and explain the matter,” said Viren Shah, president, Retail Traders’ Welfare Association Federation.
The announcement to amend the Maharashtra Rent Control Act, 1999 was done with a view to move towards the Centre’s draft Model Tenancy Act. However, the amendment of the act was strongly opposed by citizen groups and civic activists last year.
