Suggestions regarding draft Model Tenancy Act, 2019 sent to the MHUA on 28 July, 2019

Mr. Akhil Saxena,                                                                                     

Deputy Secretary (Housing)

Ministry of Housing and Urban affairs,

Nirman Bhawan,

New Delhi

Email: asaxena@nic.in                                                                 

Subject: Suggestions regarding draft Model Tenancy Act, 2019

Sir,

The only issue plaguing Indian cities for the last several decades is the continued existence of archaic rental laws. There is no clarification by the Government so far on whether these would be repealed or not.

If the Government is serious about bringing any change in rental laws the first step should be to expressly repeal the Delhi Rent Control Act, 1958 (DRCA). It is within the powers of the Central Government to do this as DRCA is a Central Act. It will also set an example for other states and they will follow suit.

Any new Tenancy Act should specify a time frame (maximum of one year) within which the existing tenancies would come under its ambit.

Thanks.

Yours sincerely,

Shobha Aggarwal

President, Committee for the Repeal of Delhi Rent Control Act

CRDRCA's response to MHUA clarification on draft MTA

PRESS RELEASE

To

Chief Reporter/ News Editor,                                                                    

Subject: Re. Clarification issued by Secretary, Ministry of Housing and Urban Affairs (MHUA) on July 23, 2019 at a hurriedly called press conference to address fears that draft Model Tenancy Act, 2019 would be watered down like the RERA

The Secretary, Shri D. S. Mishra said “We have MoUs signed from PMAY-U with all the States, including West Bengal, that when the Centre comes up with the Model Tenancy Act, the States will either enact the same Act or align it with their existing laws,” (Business Line 23.07.2019).

It may be recalled that in December, 2005 the then Prime Minister had launched the flagship scheme JNNURM. It was the biggest funded urban renewal mission ever undertaken in any country so far. To receive funds under JNNURM the states and civic agencies had to sign a MoA clearly committing that rental law reform would be undertaken in a time bound fashion.

A report by PIL Watch Group (of which the undersigned is one of the two authors) found that central assistance was given to States and Union Territories which had not even undertaken the mandatory Rent Control Law reform. For example in the case of Gujarat it was shown (at the then JNNURM website) that it had undertaken the rental law reform whereas all it had done was to extend the date of the existing archaic Rent Act of 1947 for another ten years i.e. till 2021. A classic case of outright deception!

For full PILWG report visit: http://pilwatchgroup.blogspot.com/2014/05/jnnurn-rent-control-law-reform-and-lies.html

Thus there is no reason to believe that because states sign MoUs with the Central Govt. to get benefits/subsidy under PMAY-U, the rental law reform would come about.

Secondly, even in the press conference the MHUA failed to clarify if the existing tenancies under various state rent control acts will be covered under MTA to be enacted by the States.

Shobha Aggarwal

President, Committee for the Repeal of Delhi Rent Control Act

संपत्ति मालिकों को कोर्ट से राहत नहीं Business Standard 23 July, 2019

बीएस संवाददाता / नई दिल्ली July 22, 2019 उच्चतम न्यायालय ने दिल्ली किराया नियंत्रण कानून की वैधानिकता को चुनौती देने वाली याचिका आज खारिज कर दी। इससे उन संपत्ति मालिकों को निराशा हो सकती है जिनकी व्यावसायिक संपत्तियां मामूली किराये पर लगे हैं और वे उन्हें खाली भी नहीं करा पा रहे हैं। अब ऐसे संपत्ति मालिक आदर्श किराया कानून बनने के बाद इसे आधार बनाकर दिल्ली किराया नियंत्रण कानून को चुनौती देने पर विचार कर रहे हैं। उच्चतम न्यायालय में याचिका दायर करने वाली और दिल्ली किराया नियंत्रण अधिनियम के लिए निरसन समिति की अध्यक्ष शोभा अग्रवाल ने बताया कि दिल्ली उच्च न्यायालय ने दिल्ली किराया नियंत्रण कानून की वैधानिकता को चुनौती देने वाली याचिका खारिज कर दी थी। उच्च न्यायालय के इस फैसले के खिलाफ मकान मालिक उच्चतम न्यायालय पहुंचे थे लेकिन वहां भी याचिका खारिज हो गई। इससे संपत्ति मालिकों को राहत नहीं मिल सकी। आगे की रणनीति के बारे में अग्रवाल ने कहा कि कानूनी पहलुओं का अध्ययन कर पुनर्विचार याचिका दायर की जाएगी। इसके साथ ही केंद्र सरकार द्वारा आदर्श किराया कानून के मसौदे के आधार पर कानून बनने के बाद इस कानून का आधार बनाकर भी दिल्ली किराया नियंत्रण कानून को खत्म करने के लिए याचिका दायर करने पर विचार किया जाएगा। इसमें अपील की जाएगी कि पुराने कानूनों के कारण विवादों से छुटकारे के लिए इन कानूनों को खत्म किया जाए और पुराने मामले भी आदर्श किराया कानून के तहत आने चाहिए। दिल्ली में 3,500 रुपये से कम किराये वाली संपत्ति दिल्ली किराया नियंत्रण कानून के दायरे में आती है। पुरानी दिल्ली के बड़े बाजारों से लेकर कनॉट प्लेस जैसे महंगे बाजार में कारोबारी 100 रुपये से लेकर 3,500 रुपये तक मामूली किराये पर दुकानें चला रहे हैं जबकि इन बाजारों में बाजार दर पर इन दुकानों का किराया कई हजार से लेकर लाखों रुपये में है। किराया नियंत्रण कानून के दायरे में आने से संपत्तियों पर किराया भी तीन साल में 10 फीसदी बढ़ता है।

PRESS RELEASE: No justice to owners of old tenancies in Delhi

The division bench comprising of Hon'ble Mr. Justice Arun Mishra and Hon'ble Mr. Justice M.R. Shah of the Supreme Court (SC) today i.e. 22 July, 2019 dismissed the Special Leave Petition challenging the Delhi High Court judgement dated 07.01.2019 which had upheld the constitutional validity of the Delhi Rent Control Act, 1958. As the Petitioner (and losing one) it is imperative to point out that the SC did not go into the merits of the case today.

What transpired in the Supreme Court today:

The court at the very outset – even before the petitioner-in-person could utter a word – said “dismissed”! Still the petitioner pointed out that a similar petition challenging the The Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 is already admitted by the court. Justice Mishra responded that we have already dismissed a petition from the same order (of the Delhi High Court dated 07.01.2019) and “we have to be consistent”. It is pertinent to mention here that as per the Supreme Court current roster, petitions under Rent Acts are not supposed to go before the bench headed by Justice Mishra!! The pre-existing bias in the minds of the judges ensured that the petitioner did not get a fair hearing

The struggle of owners will continue with renewed efforts and we will now oppose the draft Model Tenancy Act, 2019 (till it includes old tenancies in its ambit) both inside and outside the Parliament.

Shobha Aggarwal

Petitioner-in-person & President (CRDRCA)

Read the SLP here:
https://drive.google.com/file/d/1Cj9RNooTu2dzO-ZGQZFKFWAqUWmvriiB/view?usp=sharing

PRESS RELEASE: Petition in Supreme Court challenging the Delhi Rent Control Act, 1958 listed on 22nd July

A Special Leave Petition (SLP) has been filed in the Supreme Court (SC) challenging the Delhi High Court (DHC) judgement which had upheld the constitutional validity of the Delhi Rent Control Act, 1958. The SLP titled Shobha Aggarwal vs. Union of India & ors will be listed in the SC on 22 July, 2019 at item no. 8 in Court no. 4 before the Division Bench comprising of Hon'ble Mr. Justice Arun Mishra and Hon'ble Mr. Justice M.R. Shah. It may be recalled that the division bench of the Delhi High Court on 07 January, 2019 had dismissed the petition challenging the constitutional validity of the Delhi Rent Control Act, 1958 (DRC Act).

The petition assumes significance as the Ministry of Housing and Urban Affairs (MHUA) recently released the draft Model Tenancy Act, 2019 (MTA) and has stated in its press release that the “MTA will be applicable prospectively and will not affect the existing tenancies”. If the existing tenancies are kept out of the purview of any new Rent Act then the MTA is a sham exercise to fool the people. In the city of Delhi relief is needed only for landlords of old properties as the rest of the tenancies are either governed under the Transfer of Property Act, 1882 or are outside the ambit of any law; jhuggi-jhopri colonies for instance. Nor will it reduce litigation as 10.15 % of all civil cases in Delhi District Courts are under DRC Act, 1958. The draft MTA will also not help unlock thousands of properties lying unused but in possession of tenants under DRC Act – awaiting a lucrative deal.

Several petitions challenging full or part of state rent acts are already pending in the Supreme Court awaiting final hearing viz provisions of The Maharashtra Rent Control Act, 1999, the entire The Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972. Several petitions seeking enhancement of rent under the Delhi Rent Control Act, 1958 are also pending adjudication in Supreme Court.

A copy of the SLP filed by the undersigned is available at:

https://drive.google.com/file/d/1Cj9RNooTu2dzO-ZGQZFKFWAqUWmvriiB/view?usp=sharing

Shobha Aggarwal

Petitioner-in-person & President (CRDRCA)

The draft Model Tenancy Act, 2019 – A death sentence for owners of old properties

The Committee for the Repeal of Delhi Rent Control Act (CRDRCA) held an emergency meeting today to assess the draft Model Tenancy Act, 2019 proposed by the Central Govt. and which was carried by a section of the media today. The CRDRCA passed a resolution out-rightly rejecting the proposed Tenancy Act – lock, stock and barrel. The first reason for rejection is that it has deliberately and on purpose left out the hundreds of thousands of property owners in Delhi and Mumbai who would continue to get pittance as rent for properties in prime commercial areas which were rented out 6-8 decades earlier. Govt. welfare policies as a rule help those who are senior citizens or super senior citizens or those whose needs are the most. In the instant case even this basic principle has been lost sight of and owners between 60 to 80 years of age have been thrown to the wolves.

Secondly, even as the second decade of 21^st century is coming to an end the present Union Govt. is applying the age old tactic of divide and rule practiced and perfected by the British colonial rulers; in the instant case by creating a rift between landlords of new and old tenancies.

Thirdly the Govt. of India has once again succumbed to the powerful tenant-trader lobby for the nth time since 1995.

The CRDRCA resolves to oppose the draft Model Tenancy Act, 2019 tooth and nail till gross injustice done to owners of old tenancies are addressed.

Future Course of Action:

Hopes are pitched on the Special Leave Petition against the judgement dated 07.01.2019 of the Delhi High Court upholding the constitutional validity of the Delhi Rent Control Act, 1958 in the case titled Shobha Aggarwal & others vs. Union of India and another. It will be listed in Hon’ble Supreme Court of India on 22^nd July, 2019.

(Shobha Aggarwal)

President (CRDRCA)