Real Estate 101
Rent
Legal

Maharashtra Rent Control Act 1999: Rights & Rules

By
 
Devashrita Gujral
Posted on September 19, 2023. 10 mins

Introduction

Mumbai, a thriving center for finance and entertainment in India, is currently dealing with a complex and ongoing rental issue. Residents, both those born and raised in the city and those who have migrated there, are struggling to cope with the exorbitant rates of property and the ever-present need for homes. This has resulted in a difficult scenario where the cost of renting in Mumbai is often a strain on individuals and families alike, making it hard to find affordable housing options.

To address the difficulties and worries related to renting homes in the state, the Maharashtra Rent Control Act of 1999 was passed. In order to protect the interests of both landlords and tenants and to establish an organized rental market, it adopted a number of rules. We'll go through important topics in this post like rent, eviction, the availability of necessities, property use, and the laws controlling eviction under this act.

Maharashtra Rent Control Act 1999

The Maharashtra Rent Control Act of 1999 was introduced in order to control the rental market, safeguard the rights of both landlords and tenants and create a foundation for honest and open dealings. This is a key piece of law that controls the landlord-tenant relationship in the state. We shall examine the rights that the Maharashtra Rent Control Act of 1999, which went into force on March 31, 2020, grants to landlords and tenants.

Rights of Landlord and Tenant Under Maharashtra Rent Control Act 1999

Rent

The landlord possesses the authority to establish and augment the rent by 4% annually, commencing on the day the Act takes effect. Should 70% of tenants provide written approval, the landlord may also raise the rent by 15% annually for renovations and adjustments. Additionally, in the event of designated structural repairs, excluding those executed in adherence to the Maharashtra Housing and Area Development Authority (MHADA) Act, the rent can be increased by an extra 25% annually. Rent escalations may coincide with tax hikes.

Eviction

According to Section 25, a landlord has the right to reclaim control of any premises if the court determines that they are reasonable and genuine. If the tenant erects a permanent construction on the property without the landlord's consent, the landlord may also reclaim possession. The landlord may regain possession if the renter, his agent, servant, anyone claiming under the tenant, or anybody dwelling with the tenant has been proven responsible for behavior that caused annoyance or disturbance to the next house.

Supply of Essentials

According to section 29, a landlord cannot stop providing essential services including power, water supply, stairway lighting, elevator use, or sanitary services. In the event that a landlord provides these services, a tenant may file a court case under section 29(4).

If the landlord disobeys the court's directives, they will be fined. If the landlord is found to be in the right, the court will directly return the benefits. If the penalty is not paid, the court may sentence the offender to up to three months in prison or a fine of Rs 1000, or both. The fine can go up to Rs 100 every day.

Property Usage

Landlords are prohibited from using their rental homes for business purposes. Additionally, they cannot permit their tenants to do this. The landlord could receive a fine of up to Rs 10,000, up to six months in jail, or both penalties for breaking this law.

Eviction Rules Under Maharashtra Rent Control Act

Landlords are allowed to evict tenants from their homes under specific conditions. It cannot be done, though, if the tenant pays the rent on time or is prepared to do so. Only after the 90-day notice period has passed and the notice period has begun (15 days after the landlord has sent the information), may a lawsuit be launched. The Transfer of Property Act of 1882 has a reference to this provision in Section 106.

  • If the court concurs, the landlord may regain ownership in the following circumstances:-
  • A tenant violates any provision of the Transfer of Property Act (Section 108) by doing anything.
  • On the property, permanent construction is done without the landlord's consent.
  • The landlord has made the property available for sale or to any other tenants after a tenant gave notice to vacate.
  • If the tenant or any member of their family is proven to be engaging in any unlawful or immoral conduct, they may be held guilty of causing a nuisance and annoyance to the neighboring property.
  • A tenant illegally sublets the apartment.
  • The tenant's employment with the owner, upon which the rented space was granted, has ended.
  • The tenant was found guilty of violating the following rules with regard to the premises
  • The landlord's own legitimate and reasonable need to occupy the property.
  • This also applies to making repairs, which cannot be done without vacating and demolishing the property.
  • A competent authority may remove a tenant using whatever force is necessary if they don't follow the eviction order within 30 days of the date it becomes final.

Conclusion

Familiarizing oneself with the provisions of the Maharashtra Rent Control Act 1999 is essential for all landlords and tenants in the state. This crucial legislation ensures a fair and transparent rental market by equally considering the rights and duties of both parties. It is imperative to understand your obligations and entitlements under this act to establish a legally compliant and harmonious rental relationship. Therefore, navigating Maharashtra's rental market with confidence demands a thorough understanding of this law.