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New Rent Act: Supreme Court Orders, Poll DefersBy parul118, Section Real Estate
Despite political upheaval against the recent Supreme Court order that asked the Centre to "repeal and replace" the Delhi Rent Control Act, 1958, with a newer Act, there's little chance of any development till next year's Lok Sabha elections.
Sources in the Urban Development Ministry, which is studying both the 1958 Act and the 1995 Delhi Rent Control Act, said neither the ruling Congress nor any other party would ratify the new Act before the polls. "There is no question," said the ministry official while dismissing the possibility of a more relevant Act coming in as per the apex court order. "Whichever Act is implemented will set either the tenants or property owners against the party that implements it." The 1995 Act was brought in by then Chief Minister Madan Lal Khurana. Urban Development Secretary M Ramachandran said, "We are studying the Supreme Court judgment and looking at the Parliamentary motions with regards to the new Act. We are seeing if any changes, if at all, are required. It had been notified by the Parliament in 1995 and should have been placed before the Cabinet since." But Delhi Government has reasons to be apprehensive if the new Act is not implemented soon. "We will introduce the system of Title Registrations in the city soon," a senior government official said, "and this system involves determining and registering ownership of any particular property. It will cut down property disputes and litigations while providing a boost to sales. "But if the '58 Act stays, it will get in the way of Title Registrations. How does one determine with certainty the true ownership of a property without the Centre taking a stand?" Acts: 1958 vs 1995 Click on "Full Story" For Read This Point
Acts: 1958 vs 1995
More worrying, officials said, are buildings in areas such as Chandni Chowk and Karol Bagh: they would remain dilapidated and hazardous without capital investment and proper redevelopment. "With rents so low, thanks to the 1958 Act, landlords do not want to maintain properties." Officials said the scenario is the same in Mumbai, where the 1958 Act prevails. Supreme Court advocate Anil Amrit, who deals in property cases, said the number of tenant-landlord dispute cases pile up "precisely because the law is ambiguous. Contrary to popular belief, the 1995 Act is not against either tenants or landlords -- it protects interests of both parties; 1958 Act is partial towards tenants." Amrit said the '58 Act is based on the presumption that there is shortage of commercial space in Delhi. "The Supreme Court passed the recent verdict (empowering owners to vacate properties) because this assumption has now become redundant with so many malls and expansion of property." Amrit said the Act was conceptualised after taking opinions of the judiciary and "concerned parties", including property owners and traders. "As per the 1995 Act, every agreement between tenant and landlords has to be written documents, registered with the government. This protects the rights of both parties. In case of the tenant's death, legal heirs have been specified; these heirs cannot be evicted for a period of 10 years."
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