Maharashtra: New Law To Protect Tenants

In a move that is sure to bring relief to thousands of people across Maharashtra, the state government has adopted a new law that allows tenants to redevelop tenanted property on their own.

Tenanted Buildings Turn Deathtraps

Crumbling walls, broken doors and windows and a general sense of neglect, that is typical of most tenanted buildings in Mumbai as tenants & landlords faceoff off in a battle that has been raging for over half a century.

“The entire onus was on the owners and the tenants absolutely had no say in anything. What used to happen is that unless and until the landlord was not satisfied with the interest he has got in that property, people had no choice but to put up with whatever they are living in.” says housing expert Vijay Samant.

It all started when tenants moved into these apartments in the 1950s and 1960s, paying low rents in return for paying a lump-sum amount called ‘Pugree’ up front. While you might have expected rents to increase over the years, the Maharashtra Rent Control Act came into force, freezing rents at pre-1965 levels while also making it impossible for landlords to evict tenants. The landlords responded by refusing to carry out repairs, hoping that buildings would deteriorate thereby forcing the tenants out.

New Law Gives Tenants More Power

The state government estimates that there are over 1,500 dilapidated tenanted buildings in Mumbai. If the building collapses, tenants lose all rights to the property. But now there is hope, thanks to the Maharashtra State Cabinet amending the BMC act 1888, while introducing Section 199a – a law that allows tenants the right to redevelop their buildings if it has been declared unsafe by the BMC.

“Tenants will have to contribute money; they will have to come in good numbers. 60-70% of the tenants should give the consent, approach the corporation and from the corporation, will give them permission and the building can be redeveloped, can be repaired.” says advocate Vinod Sampath.

The new law ensures that tenants are not forced to accept one-sided agreements from landlords in return for repairs to their buildings. It even protects the interests of landowners by protecting their rights over the land, even after redevelopment has taken place.While the question of whether rents should be increased to maintain these buildings remains, the government has taken a good step in making sure that no lives are lost.

Nikhil Narayan Sivadas, Assistant Editor, NDTV