X, a tenant has been living in an old building situated in the prime locality of a city of the land 12 years on reasonably charged rental basis. In the wake of spurt in rents after software boom, the owner increased the rent 700 time more, what he was setting as rent. Advise the tenant as to legal remedies available to him.
1. Whether The increasing the rent by 700 times is valid? NO
2. Whether X is protected under the Rent Control Act? YES
3. Whether the legal remedies are available to X? YES
Section 4 of the Andhra pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 : Determination of fair rent by the Rent Controller: Controller shall on application by the tenant or landlord of a building, fix the fair rent for such building after holding such enquiry as the Controller thinks fit.
Section 7 of the Act: Landlord not to claim or receive anything in excess of fair rent or agreed rent.
This problem is related to the Legal remedies available to the tenant against excessive increase of rent. Rent Control legislation were enacted providing safeguards to the sitting tenants as against the existing rights of the landlords, which before coming into force of such law were governed by contract between the private parties. Andhra Pradesh Rent Control Act is a comprehensive legislation relating to lease, rent and eviction. As housing is one of the state subjects under the Constitution of India, the enactment and enforcement of rent control laws is the responsibility of the individual states.
The changes in A.P Rent Control Act, 1960 aimed at enhancing the rental value for purposes of the Act to Rs. 3,500/- a month in the case of municipal corporations and to Rs. 2,000/- for all other areas. The earlier value in both the categories is Rs. 1,000/- a month, a rent that will rarely fetch a reasonably comfortable accommodation. The increase does not apply to 15 year old buildings. With this, a tenant paying rent up to Rs. 3,500/- in cities and Rs. 2,000/- in other areas can approach the competent authority i.e., the Controller, if he is asked by the owner to vacate in contravention of the agreement signed by both prior to his occupation.
In the instant problem, the increasing the rent by 700 times is not valid. X can approach the competent authority i.e., the controller for implementing the provisions of the A.P Rent Control Act, 1960.
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