The way was paved for bringing a new Bill under which rent will be linked to inflation in Delhi as the Union Cabinet on Thursday gave in-principle approval to withdraw the controversial legislation of 1995.
The 1958 Act was sought to be replaced by legislation in 1995, but that was not notified even after enactment because of huge controversy with tenants being up-in-arms over it. The Centre’s move to repeal the amended Delhi Rent Act of 1995 has shattered the hopes of thousands of landlords, who have properties in prime commercial areas such as Connaught Place, Karol Bagh, Paharganj and the Walled City.
The issue of Rent Act in Delhi is hanging fire for 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 as well, it requires detailed and careful consultation. The move assumes significance as the announcement is being made when the UPA Government is getting ready for the 2014 elections.
“In-principle approval was given for withdrawal of the (rent) bill,” Information and Broadcasting Minister Manish Tewari said after the Cabinet meeting.
However, no details were given about the new bill that will replace the earlier Act. The Act of 1995 was to replace the archaic law of 1958 that protected the migrant population from arbitrary rent hikes by landlords. 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.
“We will start a new exercise to frame the rent law after the withdrawal of the 1995 Act. It will be ready in two to three years’ time after due consultation with all stake-holders,” a senior Urban Development Ministry official said. However, the official added, “The new law will be a balanced one — neither against landlord nor against tenants. The existing one is pro-tenants. The provisions of the rent will be linked to inflation.”
Reacting to the Union Cabinet's decision to repeal the Delhi Rent Act, State Congress president and MP Jai Prakash Agarwal hailed the Government’s move and stated that the bill, passed several years ago, had not been implemented, and by withdrawing the act, justice has been done to the people of Delhi.
Agarwal said it was a very apt decision which the Delhi Congress wholeheartedly welcomed. He expressed his gratitude to Prime Minister Dr Manmohan Singh and Congress president Sonia Gandhi for withdrawing the Delhi Rent Control Act.Roshanara Road Residents' Welfare Association president Indrapreet Singh Goldy also appreciated the UPA Government decision on Delhi Rent Control Act and said that the new act should be a balanced one and should also bring justice to the owners.