Now, house rent in Delhi linked to inflation

The way was paved for bringing a new Bill under which rent in Delhi will be linked to inflation as the Union Cabinet Thursday gave in-principle approval to withdraw the controversial legislation of 1995.

The new Bill will replace the Act of 1958. The 1958 Act was sought to be replaced by a legislation in 1995 but that was not notified even after enactment because of huge controversy with tenants being up in arms over it.

"We will start a new exercise to frame the rent law after the withdrawal of the 1995 Act. It will be ready in two/three years time after due consultation with all stake holders," a senior Urban Develpment Ministry official said.

However, the official said, "The new law will be a balanced one - neither against landlord not against tenants. The existing one is pro-tenants. The provisions of the rent will be linked to inflation."

The Act of 1995 was to replace the archaic law of 1958 that protected the migrant population from arbitrary rent hikes by landlords.

"In-principle approval was given for withdrawal of the (rent) bill," Information and Broadcasting Minister Manish Tewari told reporters here after the Cabinet meeting today.

The issue of Rent Act in Delhi is hanging fire for the last 18 years because the tenants have been demanding justice and conversion of the 1995 Act into a balanced legislation.

According to the official, since the Delhi Rent Act is likely to affect rent laws of other states in the country, it requires detailed and careful consultation.

The move assumes significance as the announcement is being made when the UPA government is getting battle-ready for the 2014 elections.

The existing law, while giving protection to the tenants who pay paltry rent, was seen as serving as an instrument for harassment of landlords who became helpless and could not increase rent despite massive inflation.