Mumbai, Mar 12: The state government is all set to bring in a new Rent Act, according to minister of state for housing Raj Purohit.According to him the government is taking into account the national policy (on housing) and other model rent acts, including the one prevailing in West Bengal, while framing the new act."I have been authorised by the government of Maharashtra to invite both the landlords and tenants to present their papers on this issue," he said adding that a solution agreeable to both the sides will be arrived at.He was speaking at a seminar organised by Ficci (western region), All India Association of Industries (AIAI) and the Maharashtra Chamber of Commerce and Industry (MCCI) here on Wednesday.Speaking on the occasion Mulla & Mulla solicitor DM Popat said that the proposed rents in the Model Rent Act of the state government (proposed in 1993) are not harsh.For premises below 25 sq metres, the rent increase could be up to four times while for premises above 75 metres the maximum hike will be 16 times the existing rates. The hike will be only in the basic rents and not in the taxes, he clarified.
Admitting that an increase of four times effectively means a rise of 100 per cent, Popat said that the municipal corporation must be asked not to proportionately increase the taxes.
Ficci programme committee chairman SB Somani said that while quashing the decision of the Mumbai high court, the supreme court has not only forbidden the extension of the old Rent Act but also has held it invalid and arbitrary.An absurd increase in rent will make life miserable for the tenants and most of them will be forced to vacate the premises, said Ficci (western region) chairman CH Mirani.According to him, a balance view will have to be taken and a right formula evolved to the satisfaction of both landlords and tenants.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
