The Bill was earlier tabled on July 27, 1993, in the Upper House and was subsequently referred to the JSC, which was authorised to present its report and the amended Bill.

As per the proposed Rent Act, 1999, rents in the city and state alike will increase by four per cent per annum. Purohit informed the four per cent annual increase would be on a compounded basis, unlike the simple five per cent interest mooted earlier, inviting censure from critics that the compounded four per cent increase would result in major hikes in rents over the next ten years.

The committee, in its report, has made several other crucial suggestions, such as notapplying the new Act to foreign missions, international agencies, banks, public and private sector undertakings and government-established corporations which have a paid-up capital of more than Rs one crore.

The JSC has recommended changes in 16 clauses of the proposed legislation and suggested introduction of two new clauses.

One of the changes recommended is that the standard rent provision not be made applicable, from commencement of the new Act, to tenants of buildings constructed after 1987. However, it appears all existing tenants in buildings built after October 1, '87 would now be outside the purview of standard rent, though the recently proposed ordinance amending the Act -- which failed to get Centre's nod -- said only such post-1987 premises first let out after the ordinance came into force would lose protection. Advocate Keerit Shah, representing some tenants, said, ``It would be unreasonable and unfair to de-protect existing tenants in post-1987 buildings. This clause will be vulnerable tolitigation.''

As per the new Bill, pugree or ``premium'' will be legalised to ``fetch large revenue to the state exchequer by way of Income Tax and Municipal Tax.'' Besides, it will help ``bring down inflation in real estate and reduce circulation of black money.''

The Bill, which will be debated only in the monsoon session of the Assembly, was essentially tabled today to help the state strengthen its position against landlords in the case which comes up for hearing in Supreme Court tomorrow. The new Rent Act, 1999, will be a unified Act applicable to the whole of Maharashtra.

The Bill will be passed in the monsoon session of the legislature, Purohit told newspersons. A special session of the legislature will be called if required due to the on-going litigation in SC, Purohit added.

Also recommended by the JSC is that tenants be safeguarded against the provision that allows landlords to evict them under the guise of using the premises for charitable purposes. The JSC has said there should be aprovision in the statue preventing the inclusion of repairs carried out by the Repairs Board under the MHDA Act. The government will try to incorporate the recommendations in the Bill, Purohit said.

Tenant activists have expressed satisfaction that a vast majority of tenants remain protected.