FAQs - Maharashtra Rent Control Act

Q1. What is the importance of the Maharashtra Rent Control Act, 1999? Ans - The Maharashtra Rent Control Act, 1999 governs the law relating to rent in the State of Maharashtra. Q2. What is "Standard Rent"?back tp Ans - As per the provisions of section 7 of the Maharashtra Rent Control Act, "Standard Rent" means the rent fixed by the Court under various applicable Acts, inclusive of a 5% increase or the rent at which the premises were first let on or after 01-10-1987.

Q3. What are the provisions for rent increment in Maharashtra Act? Ans - As per the provisions of Section 11 of the Act, the rent can be increased as per the following conditions: - 4% p.a. from the date of the commencement of the Act; - 15% p.a. for improvements and alterations other than tenantable repairs which the landlord is required to carry out, provided 70% pf the tenants consent in writing; - 25% p.a. for special or structural repairs, exclusive of any repairs, exclusive of any repairs carried out under the MHADA Act, due to any increase in taxes, to the extent of increase. Q4. Does the Maharashtra Rent Control Act only apply to leased premises? Ans - No. The Act applies to both leased premises and licensed premises. Q5. How does the Act provide for eviction of tenants? Ans - Under the Act, the Government provides for a competent authority with adequate judicial powers to order eviction of defaulting tenants or licensees but only when the Agreement between the parties is Registered.

Q6 Who is responsible for Registration of the Agreement? Ans - The property owners are responsible for registering the Agreement. In case of default, the owner could be sentenced to imprisonment or be fined a minimum of Rs 5,000 with no upper limit. Further, the owner will be debarred from filing eviction suits.

Q7. Is registration of Leave & License Agreement compulsory? Ans - Yes, as per section 55 of the Maharashtra Rent Act 1999. Q8. Is it compulsory to Register Sale Agreements/ Documents of ownership flats? Ans - It is compulsory to register under the following cases: Registration of Agreement for Sale/documents of ownership flats when ownership flats are purchased from builders. In case of resale of flats in a society which is not registered. Though in case of resale of flats in a registered Co-operative Society, no registration is compulsory as per section 41 of the Maharashtra Co-operative Societies Act, 1960, some societies do insist that such documents be registered.

Q9. Is a Leave & License agreement with a Bank, PSU, Corporation, Companies exempt from Registration? Ans - Section 3 of the Maharashtra Rent Act exempts certain categories of premises. Any premises let or sublet to a bank or any Public Sector Undertaking or a limited company having paid up share capital of one crore and more is outside the purview of the Maharashtra Rent Control Act, 1999.

Q10. What happens if a document is not registered? Ans - As per Section 55(3) of the Act, the licensor can be prosecuted and on conviction be punished with imprisonment up to 3 months or with fine not exceeding Rs.5,000/- or both.

Q11. Can ownership flat be given for leave and license? What are the problems if I give for a longer period? Ans - Yes, ownership flat can be given out for leave and license provided an agreement has been entered to that effect and the Agreement has been registered with the Competent Authority under the Maharashtra Rent Control Act, 1999. Q12. What remedial recourse is available to you if residential and commercial properties owned by you are occupied by people who are not paying rent and also not vacating? Ans -In this case a notice can be served in writing to the tenants for demand of the Standard Rent in the manner provided in Section 106 of the Transfer of Property Act, 1882(IV of 1882) and after expiry of 90 days if the tenant fails to pay rent for 90 days, a suit may be filed for eviction of the tenants under the Maharashtra Rent Control Act, 1999 and recover possession of the tenanted premises under Section 16 of the said Act. Q13.What is "Permitted Increase"? Ans - As per the provisions of the "Maharashtra Rent Control Act", every landlord is permitted to increase the rent due to increase in local taxes. Such an increment in rent is defined as "Permitted Increase"..

Q14.Under what circumstances can the landlord increase the rent for the property?

Ans - A landlord is permitted to increase the rent of the rental property under the following circumstances: Increase in local taxes; For carrying out necessary improvements; Any special additions, if required; Special and heavy repairs.

Q15.What are the duties of the Court while ascertaining a "Standard Rent"? Ans - On receipt of the application, the Court may:s: Specify an amount of rent or the permitted increase. Make an order to tenant to deposit the rent in Court or with the landlord. Allocate some portion of the deposited amount to the landlord, as the case may be. In case, the tenant deposits the amount specified by Court, his application may be dismissed.

Q16.Is there any provisions for "Excess Rent" in the Maharashtra Rent Control Act? Ans - The Act directs that it is illegal to charge any amount in excess of the Standard Rent. As per the provisions of the Section 10 of the Act, it is a punishable offence to charge an "Excessive Rent". The offender may be punished to the extent of imprisonment for at least 3 months or a fine of Rs: 5000/-. Q17.What are the associated offences as per the Maharashtra Rent Control Act? Ans - Offences under the Act are: Charging rent in excess. Failure to commence work of repairs after the tenant has vacated. Failure to occupy the premises recovered.

Failure to carry out any undertaking given to Court. To cut essential supply or service. Conversion of residential into commercial premises by landlord. Failure to issue rent receipt. Failure to enter into a written Agreement and comply with Registration norms.

Q18.Which authority needs to be approached for Adjudication? Ans - The appointed Collector of Stamps of the region has the authority to adjudicate. Q19.Who needs to pay Stamp Duty in case of resale of a flat? Ans - In such a case, the contracting parties may decide amongst themselves only.