Thursday, 25 July 2019

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!

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

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