The Hindu : Andhra Pradesh News : Changes to Rent Control Act likely

Online edition of India's National Newspaper
Friday, Apr 29, 2005

Andhra Pradesh

Andhra Pradesh

Changes to Rent Control Act likely

M. Malleswara Rao

`Both house owner, tenant stand to gain'

HYDERABAD: There's good news for tenants as well as landlords. Two major changes are in the offing for the Andhra Pradesh Rent Control Act, which will give both the parties a better leverage in their respective situations. The Government is likely to notify them soon.

The Assembly cleared them recently when it passed a bill amending the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960, to suit the changed needs. The legislation is awaiting the Governor's assent. It will go to the President later for his assent.

The first change is aimed at enhancing the rental value for purposes of the Act to Rs. 3,500 a month in the case of municipal corporations and to Rs. 2,000 for all other areas. The earlier value in both the categories is Rs. 1,000 a month, a rent that will rarely fetch a reasonably comfortable accommodation. The increase does not apply to 15-year-old buildings.

With this, a tenant paying rent up to Rs. 3,500 in cities and Rs. 2,000 in other areas can approach the competent authority if he is asked by the owner to vacate in contravention of the agreement signed by both prior to his occupation.

The change, however, doesn't refer to the time limit to be given to the tenant for vacation because it varies from one agreement to another.

The second change gives armymen, retired Central and State Government employees, the aged, widows and the handicapped the right to immediate vacation of the occupant for self-occupation. If a tenant occupying is reluctant to vacate, he can be prosecuted. Armymen are also given the lenience as they serve at far-off places and they should not face any accommodation problem when they come back. The same principle is applied to retired staff.

V. Sarma Rao, Secretary (Accommodation), says the changes will balance the interests of both the parties - encourage construction activity and protect the tenants from unwarranted rent hikes and arbitrary/discriminatory/ retaliatory evictions. However, the affected party should produce receipts or agreements.

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