The Indian government enacted the Delhi Rent Control Act to protect migrants living in Delhi on rent. The goal was to assist the population in resettling after partition and to promote family acceptance in Indian society.
It was intended to keep rent and evictions under control while also providing affordable housing to the city’s poorest population. To protect their interests, Parliament passed the Delhi Rent Control Bill on December 31, 1958, which came into effect on February 9, 1959, to protect tenants’ rights. Following that, the Act was amended several times, once in 1988 and again in 2020. Now, the Delhi Rent Control Act will be repealed by the Model Tenancy Act of 2021.
The primary objective of the Delhi Rent Control Act of 1958 is to establish equitable rental rates for tenants and address matters such as eviction and rent adjustments.
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Delhi Rent Control Act (DRCA), 1958 Key Provisions:
⦁ The legislation permits tenants to remit rent by the 15th of each month in the absence of a written agreement specifying a due date. Additionally, tenants have the right to request a written acknowledgment of payment.
⦁ Landlords are prohibited from evicting tenants for timely rent payment under the statute.
⦁ The legislation reiterates a “standard” rent amount, resulting in low rental yields in central Delhi areas and limiting landlords’ ability to evict tenants paying low rents.
⦁ Furthermore, the Act stipulates that landlords may increase the “standard” rent if the leased property undergoes renovations, capped at 7.5% of the total renovation cost.
⦁ The Delhi Rent Control Act also provides tenants with the option to sublease the property, creating obstacles for landlords who wish to contest such agreements.
⦁ According to the Act, landlords are permitted to raise rents by a maximum of 10% every three years from the commencement of the lease agreement.
Eviction Rules Under Delhi Rent Control Act 1958:
⦁ A tenant or his family has not stayed on the property for over six months.
⦁ A tenant has caused major damage to the property.
⦁ A tenant has procured the property which was not allotted to him.
⦁ If the repair work cannot be accomplished without vacating the premises, a tenant will have to vacate the property.
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Delhi Rent Control Act 2020:
⦁ Since the enactment of the Delhi Rent Control Act of 1958, It has undergone several amendments and revisions.
⦁ The Delhi Rent Control Act was first amended in 1988, stating that premises with rents less than Rs 3,500 would not be subject to the Delhi Rent Control Act 1958.
⦁ Subsequent amendments and the formulation of new laws have led to the Act being renamed the Delhi Rent Control Act of 2020.
⦁ Among the provisions of this updated Act is the requirement for the creation and registration of rental agreements. The first copy of the agreement is provided to the tenant, while a rent control authority retains the second copy.
⦁ Under the Delhi Rent Control Act of 2020, any lapse in the agreement necessitates monthly renewal. Tenants can remain on the property as long as they are punctual with rent payments.
⦁ Additionally, a new amendment permits commercial property owners to request a security deposit of up to two months, while residential property owners may request a security deposit of up to one month.
Hence, the consistent enactment of the Delhi Rent Control Act has eased Tenants to stay in Delhi without much legal framework along with safeguarding the property of landlords. Soon, this Delhi Rent Control Act will be replaced by the Model Tenancy Act of 2021 with more provisions.