Rent control laws need relook, says govt panel

Pointing to the need to promote the redevelopment of old and dilapidated buildings in Mumbai, a committee of the legislature has recommended that the state government take a relook at the rent control laws, which regulate tenancy matters. The city has around 18,000 buildings, which are dilapidated and need to be reconstructed, and the committee noted that changes to these laws were needed to boost the process.

The Maharashtra Rent Control Act, 1999 is in force in the state. In 2017, the housing department had issued the Maharashtra Rent Control Rules, 2017.

In its report submitted during the recent budget session of state legislature, the committee on subordinate legislation said reconstruction of old and dilapidated buildings in Mumbai needed to be expedited. Residents of such structures, who have been relocated to transit camps, have continued to languish there for 10 to 15 years even as these buildings await redevelopment.

"It is necessary to amend the rent control act to ensure the development of old and dilapidated buildings in Mumbai. The government must create a machinery to ensure the redevelopment of these structures. A committee of experts must be appointed to examine the issue in depth and ensure that the law is amended as necessary and the interests of tenants and houseowners are protected. Measures must be suggested to ensure that reconstruction is promoted," stated a report of the committee, which was headed by Shiv Sena legislator Rupesh Mhatre.

The rules must also be amended to reflect the rent being levied on a tenement in a building and the rental prices to be charged once it is redeveloped.

The committee said that housing department officials submitted that a total of 18,000 buildings in Mumbai needed to be redeveloped and the process could be expedited with the change in the laws, including those governing rent control. The officials suggested that the cause of redeveloped could be promoted with the state implementing the Centre's Model Tenancy Act, 2018, which makes this leasing remunerative.

"A time bound programme is necessary to ensure that old buildings in Mumbai are redeveloped or they are made habitable. Similarly, MHADA should undertake redevelopment of buildings whose owners are reluctant to do so. Mumbai sees a shortage of living spaces... Amendments to the act ensure houses are made available on a rental basis will serve as a win-win for both, houseowners and tenants," the committee added.

CLEANING UP THE ACT

• It is necessary to amend rent control act to ensure the development of old and dilapidated buildings in Mumbai, report says 
• Maharashtra Rent Control Act, 1999 is in force in the state. In 2017, housing department issued Maha Rent Control Rules, 2017