Delhi Rent Act, 1995 Chapter II - Bare Act

StateCentral Government
Year1995
Section TitleRent
Act Info:

(1) The rent payable in relation to a premises shall be--

(a) the rent agreed to between the landlord and the tenant as enhanced in the manner provided in Schedule I; or

(b) the standard rent specified under section 7,as revised under section 9.

(2) In the case of a tenancy entered into before the commencement of this Act, the landlord may, by notice in writing to the tenant within three months from the date of such commencement, enhance the rent as specified under section 7 and the rent so enhanced, shall be payable from the date of such commencement.


Section 7 - Standard rent

(1) "Standard rent", in relation to any premises, means the rent calculated on the basis of ten per cent. per annum of the aggregate amount of the cost of construction and the market price of the land comprised in the premises on the date of commencement of the construction:

Provided that the standard rent calculated as aforesaid shall be enhanced in the manner provided in Schedule I.

(2) For the purposes of this section,--

(a) cost of construction shall include cost of electrical fittings, water pumps, overhead water tanks, storage tanks and other water, sewerage and other fixtures and fittings in the premises;

(b) in case any fixtures and fittings referred to in clause (a) are in common use by more than one occupant in a building, such proportion of cost of the fixtures and fittings shall be included in the cost of construction of the premises as bears the proportion to the plinth area of such premises to the plinth area of that building;

(c) the cost of construction shall be the actual amount spent on construction, and in a case where such amount cannot be ascertained, such cost shall be determined as per the scheduled rates of the Central Public Works Department for cost of construction for similar construction for the year in which the premises was constructed;

(d) the market price of the land shall be the price for which the land was bought as determined from the deed of sale registered under the Registration Act, 1908(16 of 1908), if construction commenced in the year of registration or the land rates notified by a local authority for the year in which construction was commenced, whichever is higher;

(e) the land comprised in the premises shall be the plinth area of the building and such of the vacant land up to fifty per cent. of the plinth area as is appurtenant thereto;

(f) in a case where a premises forms part of a building having more than one premises, such proportion of price of land forming part of such building shall be taken to be the market price of the land comprised in the premises as is equal to the proportion of the plinth area of such premises to the plinth area of that building;

(g) notwithstanding anything contained in clauses (c) and (d), the cost of construction and the market price of the land comprised in the premises purchased from or allotted by the Government or a local authority shall be the aggregate amount payable to such Government or the local authority for the premises:

Provided that the Rent Authority may, for the purpose of arriving at, the cost of construction and the market price of the land comprised in the premises, allow addition, subject to a maximum of thirty per cent. of amount payable to the Government or the local authority, to the amount so payable for any expenditure incurred by the landlord or by the first or any subsequent purchaser or allot tee for any improvement, addition or structural alternation in the premises.


Section 8 - Other charges payable

(1) A tenant shall be liable to pay to the landlord, besides the rent, the following charges, namely:--

(a) charges, not exceeding fifteen per cent. of the rent for the amenities as specified in Schedule II as agreed to between the landlord and the tenant;

(b) maintenance charges at the rate of ten per cent. of the rent;

(c) without prejudice to the liability of landlord to pay the property tax to the local authority, the pro rata property tax in relation to the premises.

Explanation.--

For the purpose of calculating the monthly charges payable by the tenant to the landlord towards the property tax, the amount paid or payable as property tax for the immediately proceeding year or the estimated tax payable shall form the basis.

(2) The landlord shall be entitled to recover from the tenant the amount paid by him towards charges for electricity or water consumed or other charges levied by a local or other authority which is ordinarily payable by the tenant.


Section 9 - Revision of rent in certain cases

(1) Where a landlord has at any time, before the commencement of this Act with or without the approval of the tenant or after the commencement of this Act with the written approval of the tenant incurred expenditure for any improvement, addition or structural alteration in the premises, not being expenditure on decoration or tenantable repairs necessary or usual for such premises, and the cost of that improvement addition or alteration has not been taken into account in determining the rent of the premises, the landlord may lawfully increase the rent per year by an amount not exceeding ten per cent. of such cost.

(2) Where, after the rent of a premises has been fixed under this Act, or agreed upon, as the case may be, there has been a decrease, diminution or deterioration of accommodation in such premises, the tenant may claim a reduction in the rent


Section 10 - Notice of revision of rent

(1) Where a landlord wishes to revise the rent of any premises under sub-section (1) of section 9, he shall give the tenant a notice of his intention to make the revision and, in so far as such revision is lawful under this Act, it shall be due and recoverable from the date of improvement, addition or structural alteration.

(2) Every notice under sub-section (1) shall be in writing signed by or on behalf of the landlord and given in the manner provided in section 106 of the Transfer of Property Act, 1882(4 of 1882).


Section 11 - Rent Authority to fix standard rent, etc.

(1) The Rents Authority shall, on an application made to him in this behalf, in the prescribed manner, fix in respect of any premises--

(i) the deemed rent for the purpose of clause (c) of sub-section (1) of section 3;

(ii) the enhancement in rent in the manner provided in Schedule I;

(iii) the standard rent as per the provisions of section 7;

(iv) the other charges payable as per the provisions of section 8; and

(v) the revision in rent as per the provisions of sections 9;

Provided that it shall not be permissible for the landlord to apply for the fixation of standard rent as per the provisions of section 7 in the case of a tenancy entered into after the commencement of this Act.

(2) In working out the cost of construction of any premises or the market price of land comprised in such premises for the purposes of section 7 or the expenditure incurred for any improvement, addition or structural alteration or the decrease, diminution or deterioration of accommodation in a premises for the purpose of section 9, the Rent Authority may take the assistance of a prescribed valuer who shall carry out the assessment in the manner prescribed.

(3) In fixing the standard rent of any premises or the lawful increase or decrease of the rent or determining the other charges payable, the Rent Authority shall fix or determine an amount which appears to him to be reasonable having regard to the provisions of section 7 or section 9 or section 8 and the ether circumstances of the case.

(4) In fixing the standard rent of any premises part of which has been lawfully sub-let, the Rent Authority may also fix the standard rent of such part sub-let.

(5) Where for any reason it is not possible to determine the standard rent of any premises on the principles set forth in section 7, the Rent Authority may fix such rent as would be reasonable having regard to the situation, locality and condition of the premises and the amenities provided therein, and where there are similar or nearly similar premises in the locality, having regard also to the rent payable in respect of such premises.

(6) The standard rent shall in all cases be fixed for a tenancy of twelve months:

Provided that where any premises are let or re-let for a period of less than twelve months, the standard rent for such tenancy shall bear the same proportion to the annual rent as the period of tenancy bears to twelve months.

(7) In fixing the standard rent of any premises under this section, the Rent Authority shall fix the standard rent thereof in an unfurnished state and may also determine an additional charge to be payable on account of any fittings or furniture supplied by the landlord and it shall be lawful for the landlord to recover such additional charge from the tenant.

(8) In fixing the standard rent or lawful increase or decrease of rent or determining the other charges payable in respect of any premises under this section, the Rent Authority shall specify a date from which the amount so fixed shall be deemed to have effect:

Provided that, in the matter of standard rent, in no case the date so specified shall be earlier than the date of the filing of the application for the increase or decrease of the standard rent:

Provided further that if the increase is because of improvement, addition or structural alteration, it shall come into effect from the date of completion of such improvement, addition or alteration.

(9) The Rent Authority may, while fixing standard rent or lawful increase or decrease in rent or other charges payable, order for payment of the arrears of amount due by the tenant to the landlord in such number of instalments as he deems proper.


Section 12 - Fixation of interim rent

If an application for fixing the standard rent or for determining the lawful increase or decrease of rent or other charges payable is made under section 11, the Rent Authority shall, as expeditiously as possible, make an order specifying the amount to be paid pending final decision on the application and shall appoint the date from which the amount so specified shall be deemed to have effect.


Section 13 - Limitation for application for fixation of standard rent, etc

A tenant may file an application to the Rent Authority for fixing the standard rent of the premises and a landlord or a tenant may file application for determining the lawful increase or decrease of rent or other charges payable,--

(a) in the case of any premises which was let and in which the cause of action for lawful increase or decrease of rent or payment of other charges arose, before the commencement of this Act, within two years from such commencement;

(b) in the case of any premises which was let after the commencement of this Act,--

(i) for fixing the standard rent thereof, within two years from the date on which the premises was let;

(ii) in any other case, within two years from the date on which cause of action arose:

Provided that the Rent Authority may entertain the application after the expiry of the said period of two years, if he is satisfied that the applicant was prevented by sufficient cause from filing the application in time.


Section 14 - Limitation of liability of middlemen.

No collector of rent or middleman shall be liable to pay to his principal, in respect of any premises, any sum by way of rental and other charges which exceeds the amount which he is entitled under this Act to realize from the tenant or tenants of the premises.


Section 15 - Receipt to be given for rent paid

(1) Every tenant shall pay rent and other charges payable within the time fixed by contract or in the absence of such stipulation, by the fifteenth day of the month next following the month for which it is pay-able and where any default occurs in the payment of rent or other charges, the tenant shall be liable to pay simple interest at the rate of fifteen per cent. per annum from the date on which such payment of rent and other charges payable is due to the date on which it is paid.

(2) Every tenant who makes payment of rent or other charges payable or advance towards such rent or other charges to his landlord shall be entitled, against acknowledgment, to obtain forthwith from the landlord or his authorized agent a written receipt for the amount paid to him, signed by the landlord or his authorized agent:

Provided that it shall be open to the tenant to remit the rent to his land-lord by postal money order.

(3) If the landlord or his authorized agent refuses or neglects to deliver to the tenant the receipt referred to in sub-section (2), the Rent Authority may, on an application made to him in this behalf by the tenant within two months from the date of payment and after hearing the landlord or his authorized agent, by order direct the landlord or his authorized agent to pay to the tenant, by way of damages, such sum not exceeding double the amount of rent or other charges paid by the tenant and the costs of the application and shall also grant a certificate to the tenant in respect of the rent or other charges paid.

(4) If the landlord or his authorized agent refuses to accept or evades acceptance of receipt of rent and other charges payable to him, the tenant may, by notice in writing, ask the landlord to supply him the particulars of his bank account in a bank located in the National Capital Territory of Delhi into which the tenant may deposit the rent and other charges payable to the credit of the landlord.

(5) If the landlord supplies the particulars of his bank account, the tenant shall deposit the rent and other charges payable in such bank account from time to time.

(6) If the landlord does not supply the particulars of bank account under sub-section (4), the tenant shall remit the rent and the other charges payable to the landlord from time to time through postal money order after deducting the postal charges.


Section 16 - Deposit of rent by tenant