Maharashtra Rent Control Act 1999 (2024 Update)

The Maharashtra Rent Control Act 1999 specifies the rules and regulations to follow for both tenant and landlord. And it covers aspects like standard rental prices, rent-increasing categories, penalties for not complying with the act, etc. Read this article to know about sections 12, 17, and 38, the supreme court judgment, the penalty list, and many more.

What is Maharashtra Rent Control Act 1999?

The Maharashtra Rent Control Act 1999 combines the law related to renting, repair work of premises, encouraging new house construction, and related aspects of it.

The Act focuses on providing the needed support to the tenants. And property owners should also get the exact amount for their property. 

Minimizing the problems between the tenant and the property owner regarding their deals is the core point of this act. 

The whole act is classified into 60 sections divided into 8 chapters and 3 Schedules. 

Standard Rent As Per The Maharashtra Rent Control Act 1999

As per the applicability of the Act, charging higher rent compared to the standard rent is illegal. 

If this is done by the landlord then he/she will be punished with imprisonment for up to three months or a fine up to Rs. 5000 or both.

Rent Increasing Rules As Per Maharashtra Rent Control Act 1999

The Act specifies that landlords are allowed to increase the rent by 4 percent per annum for their rented property.

The rent price can be increased if the landlord did repairs or modifications on the rented property. For this scenario, the rent increase should not be more than 15 percent per annum of expenses involved in the modifications.

If the landlord paid the increased government tax then he/she can increase the rent with the same increased tax paid amount 

Penalty Rules as per Maharashtra Rent Control Act 1999

As per the Maharashtra Rent Control Act 1999, various penalty rules are mentioned for various reasons. The below-mentioned are the penalties as the Act specifies.

Chapter 1 of Maharashtra Rent Control Act 1999

Chapter 1 covers various sections which clarify about an application, exemption, cessation of exemption and many more under the Maharashtra Rent Control Act 1999.

Section 1: Title, Extent & Commencement

This act applies to the whole of Maharashtra state.

Section 2: Application

The Maharashtra Rent Control Act 1999 is specifically applicable for residential, educational, business, trade, and storage purposes

This act will also apply to the areas or premises where the following acts were applied before.

• Bombay Rent, Hotel & Lodging House Rates Control Act, 1947
• The Hyderabad House Control Act, 1954
• The Central Provinces and Berar Letting of House and Rent Control Order, 1949
• The Central Province and Berar Regulation of Letting of Accommodation Act, 1946

Section 3: Exemption

The Maharashtra Rent Control Act 1999 is not applicable for

• Usability of land or building by government. However, if the government provided land or building to someone on basis of a license then this act will be applicable.
• Banks, Public Sector Undertaking (PSU), and Co-operative societies established by central or state acts.
• Property used for charitable or religious purposes.

Section 4: State Government to issue orders based on premises of local authority, etc

State Government can issue a general or special order on a timely basis regarding the changes in the exemption provided to a local authority.

Section 5: Cessation of Exemption

State Government can cease the exceptions provided under this act if only any contravention is been found except the core purpose of use of premises.

However, State Government will provide an opportunity to the local authority, religious or charitable institutions to prove why not to issue such an order. And why not take the necessary action.

Section 6: Conditions Regarding The Inapplicability of Standard Rent on Premises

This section specifies the inapplicability of standard rent on certain premises.

• If the particular premises is not been in use for one year then standard rent and an increase in the rent will not apply to it, As per this act. Let the premises be newly constructed or otherwise.
• This act can be applied if the premises is been constructed or reconstructed under any housing scheme.

You can check out Maharashtra rent control act 1999 to know more about every rules, penalties, and sections.

Section 12 of Maharashtra Rent Control Act 1999

Increase in rent over the payment of rates, cess, tax, charges, etc

• The landlord pays various cess, tax, charges, land assessment, and many more to the government. This is paid for his/her premises.
• If the landlord paid the increased government tax then he/she can increase the rent with the same increased tax paid amount.
• The rent amount is inclusive of electricity and water charges. And any increase in these charges will need to be paid by the landlord.

Then he/she can increase the same amount in the rent value as well.

Section 17 of Maharashtra Rent Control Act 1999

Recovery of possession for repairs and re-entry

a). The court of law will seek the tenant regarding his/her opinion on living in the premises during repair work. As the tenant decides to shift to other premises or to live in the same premises.

b). The landlord will need to provide the notice to the tenant just before the 2 months of completion of repair work. The notice will specify that the tenant can take possession once the repair work is done.

Whereas the tenant should provide his/her acceptance within 30 days of getting the notice from the landlord. And tenant will also have to provide the one-month rent amount to the landlord in advance.

Once the acceptance and one-month rent amount is received from the tenant, the landlord can provide possession to the tenant.

If the tenant fails to provide the same then the landlord can terminate the tenant’s right to occupy the premises.

c). The tenant has to hand over the possession to the landlord for repair work. 

In the following scenario

1. And even after one month, the landlord did not begin the repair work 
2. the repair work is not done as needed
3. The landlord didn’t provide possession to the tenant even after the completion of the repair work.

Within 1 year of knowing any of these scenarios, the tenant has to provide an application to the court mentioning the whole situation.

Then the court of law will make the landlord provide the repaired premise to the tenant.

d). For any reason the landlord didn’t provide possession to the tenant or didn’t follow the court order, then the landlord will be punished with up to three-month imprisonment or up to one thousand fine or both.

Section 38 of Maharashtra Rent Control Act 1999

Time limit for disposal of suits, proceedings, or appeals

• As per this act, the time limit for disposal of suits or proceedings of a case is within 12 months. And that time limit will begin from the actual date of the notice.
• As per this act, the time limit for disposal of appeals of a case is within 6 months. And that time limit will begin from the actual date of the notice.

Supreme Court Judgments on Maharashtra Rent Control Act 1999

In June 2021, the Model Tenancy Act was approved by the center for its implementation. And later it was circulated to all the states and union territories. 

But only four states revised the tenancy laws as per the Model Tenancy Act. And there was no response from the rest of the states.

The Model Tenancy Act focuses on balancing the rights of landlords and tenants. And to provide transparency in renting deals with efficiency.

However, Maharashtra Rent Control Act 1999 is already in rule and has proven helpful to over 6 to 7 lakh tenants in the state. 

And implementing the new act will be contradictory to the rentals.

So, the Maharashtra government is not ready to implement the Model Tenancy Act as of now.

You can check out important rent deposit rules of model tenancy act to know about rent deposit and refund rules under this act.

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