Wednesday, 25 November 2020

PRESS STATEMENT BY OWNERS ON DRAFT MODEL TENANCY ACT, 2020

 


Sometime towards the end of October 2020 the Union Ministry of Housing and Urban Affairs (MoHUA) surreptitiously uploaded on its website Draft Model Tenancy Act, 2020 and for the nth time invited suggestions/comments/views on it within 30 days. Fully knowing how farcical this exercise has become it was not considered necessary to give advertisements in the major daily newspapers in Delhi. No official press-release was issued.

 

This time all pretense has been given up. Point V of the background note on Model Tenancy Act, 2020 available on the website of MoHUA states that “the MTA to be applicable prospectively and the existing tenancies shall continue to be governed by the respective extant rental laws of the States/UTs”.

 

The object and purpose of the process that started in 1992 was to reform the rent control laws all over the country and slowly bring all properties under general law on Transfer of Property. If the existing tenancies will continue to be governed by the respective extant rental laws of the States/UTs, then there is no need for a new law. Why undertake this superficial exercise? Non-inclusion of old tenancies makes any new law a useless piece of legislation. The housing problem will not get resolved; dangerous buildings will continue to fall and rejuvenation of old cities will not take place.

 

The Central Govt. has the power to repeal all the existing State rent control laws as the topic of Transfer of Property under which all rent laws fall is covered by Entry 6 of the Concurrent List in the Seventh Schedule to the Constitution of India. This will solve the housing problem in one stroke.

 

How long does it take for a govt. to implement a policy? In the case of rent control it is over 28 years and counting. The whole process that started in 1992 and in the case of Delhi resulted in the passing of the Delhi Rent Act, 1995 (unanimously passed by both the houses of the Parliament of India). It received the assent of the President of India on the 23rd August, 1995. Mr. P. V. Narasimha Rao, then Prime Minister of India and also the Minister of Urban Development had asked the Urban Ministry to notify the Act. But bureaucracy under the influence of tenant-trader lobby scuttled the process using the bogey of Election Commission objecting to notifying the DRA, 1996; the truth is that Election Commission had till then not even announced the elections. So the will of one billion people was slaughtered to please the rich tenant-trader lobby. Money bags must have changed hands for this wheeling-dealing. The BJP Govt. in power at Delhi led by then Chief Minister, Madan Lal Khurana opposed the implementation of Delhi Rent Act, 1995. This gentleman till the passage of the Bill was leading an agitation for the Bill to be passed! The somersault over the issue speaks volumes for the integrity of the peoples’ representatives in power. The Govt. of India has once again succumbed to the powerful tenant-trader lobby. Is the BJP led NDA only functioning for this lobby? Then, sabka saath sabka vikas is a hollow slogan. Aam Aadmi Party in power at Delhi has also till date not taken any stand.

 

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. They have struggled all their lives for their properties to come out of rent control but now at the fag-end of their lives they have lost all hope for justice both from the courts and the government.

 

The need of the hour is for India to get another Prime Minister like Mr. P. V. Narasimha Rao who has the courage to undertake reforms without playing partisan politics.

 

Thanks.

Yours sincerely,

Shobha Aggarwal

President, Committee for the Repeal of Delhi Rent Control Act

 


Tuesday, 24 November 2020

Comments/suggestions submitted to MoHUA on draft Model Tenancy Act, 2020

 

from:Committee for the Repeal of Delhi Rent Control Act crdrca@gmail.com
to:asaxena@nic.in,
s.jogiani@gov.in,
jatin.kumar86@nic.in
date:Nov 24, 2020, 11:36 AM
subject:Suggestions regarding draft Model Tenancy Act, 2020



To,

Shri Akhil Saxena,

Deputy Secretary (Housing),

Ministry of Housing and Urban Affairs,

Nirman Bhawan,

New Delhi

 

Dear Sir,

 

On behalf of property owners whose properties are stuck under Delhi Rent Control Act, 1958 and similarly placed owners in other cities the Committee for the Repeal of Delhi Rent Control Act (CRDRCA) rejects the proposed Model Tenancy Act 2020 – lock, stock and barrel. The reason for rejection is that Point V of the background note on Model Tenancy Act, 2020 available on the website of MoHUA states that “the MTA to be applicable prospectively and the existing tenancies shall continue to be governed by the respective extant rental laws of the States/UTs”. The MTA 2020 has deliberately and on purpose left out the hundreds of thousands of property owners in Delhi, Mumbai and other cities 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 21st 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. Is the Govt. of India only functioning for this lobby? Then, sabka saath sabka vikas is a hollow slogan.

 

SUGGESTION

 

The need is for repeal of existing rent control laws all over the country. If that is done there is no need for a new law. The Central Govt. has the power to repeal all the existing rent control laws as the topic of Transfer of Property under which all rent laws fall is covered by Entry 6 of List III in the Seventh Schedule to the Constitution of India. That will solve the housing problem in one stroke. The MTA 2020 is a useless and counterproductive piece of legislation.

 

Last year also we had made a similar suggestion on MTA, 2019 (see below) which you have not taken into consideration.

 

Kindly acknowledge receipt of this communication and keep us informed.

 

Thanks.

Yours sincerely,

Shobha Aggarwal

President, Committee for the Repeal of Delhi Rent Control Act

4/14 A, Asaf Ali Road, New Delhi – 110002

Phone: 98115 28656


Committee for the Repeal of Delhi Rent Control Act <crdrca@gmail.comJul 28, 2019, 9:44 AM

to asaxena

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

Phone: 98115 28656

Address: 4/14 A, Asaf Ali Road, New Delhi- 110002