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Chat Transcript
Transcript of Chat with Mr. K.G. Raghavan on Bangalore Rent Control Law
on January 5, 2002

arun asks hellllllllllllo sir,
K G Raghavan says hello

nvram asks What are the limits prescribed under rent control act for commercial premises
K G Raghavan says under the new act there is no distinction between commercial and residential so far as rent is concerned, but, the act does not apply to an non-residential premises having a plinth area exceeding 14 sq metres

harish asks good evening sir
K G Raghavan says good evening

arunkumar asks What would be the status of pending proceedings under the Karnataka Rent Control Act, 1961?
K G Raghavan says so far as pending proceedings are concerned, section 70 (2) is relevant, [1] execution of an order already passed can continue under the old act [2] where any proceedings are pending before the authorities in respect of a premises the act applies it will be continued and by the authorities and the court under the new act [3] under the new act, proceedings will abate with respect to premises to which the act does not apply

nvram asks are there any amendments made to the act in the recent past.
K G Raghavan says the new rent control act has come into force with effect from 31st dec 2001, and no amendments have been made subsequent thereto, the old act stands repealed and is no longer in force

madhavan asks hello sir
K G Raghavan says hi

arun asks what are the advantages of this new act?
K G Raghavan says [1] the balance is maintained between the rights of the landlords and tenants [2] tenants interests are protected by the duties imposed upon the landlord, [3] the landlord is assured of a return on investment of 10%[4] eviction is made simpler [5] rent agreements have to be in writing which avoids controversy as to the terms of tenancy at a later point of time

madhavan asks what are the implications of this act and why is there such a major hue and cry on this
K G Raghavan says the major implication of the act is that it confers greater rights upon landlords than the old act, this appears to be the major reason for the hue and cry against the new law

madhavan asks i propse to lease out my commercial property in mg road , how does this change anyting from the past - what is that i need to know
K G Raghavan says for the purpose of leasing out the tenancy must be in writing, beyond this the provisions of the transfer of property act have to be complied with. I am assuming that the commercial premises is not exceeding 14 sq metres.if it does exceed, the act does not apply.

vadivelu asks good evening Mr.Raghavan, most landlords feel that the rent control act is one sided, leaning toward the tenant, rather than the owner. What would be your comment?
K G Raghavan says i believe that the new law is not as much leaning in faour of the tenant as the old law, but, it has to be accepted that all rent control legislations are meant to protect the interest of a class of tenants, in that sense, it is true that rent control law leans towards the tenant.

rangaca asks Does the government have the necessary mechanism / infrastructure to implement such a legislation?
K G Raghavan says yes, the authorities under the new rent act, to implement the new provisions, are [1] rent cntrollers, courts, and [3] appellate authorities, namely deputy commissioners, all of whom are in place.

Raj asks In a pending suit, the suit schedule property consists of 2 floors. the rent for the 1st floor is Rs. 2500. for the 2nd floor it is Rs. 5,500. A contention has been raised that there are two tenaments. will the rent act apply to the 1st floor?
K G Raghavan says answer to this question will depend on whether it is a single tenancy or more than one tenancy.assuming that the premises is residential, the application of the act will depend upon the fixation of deemed rent or standard rent under section 3 (e) of the act.

Ramya.S.Iyer asks I want to know what will be the right way for selling a house which is 40 years old as the builders today are barging to make buisiness at the cost of the public.
K G Raghavan says there is no rent control issue in this.

ramesh asks hello sir
K G Raghavan says hello

Raj asks hello sir
K G Raghavan says hello

Aruna asks I have a tenant in respect of an apartment who is paying Rs.4000 per month. Can I immediately file a suit for his eviction or should this be decided only after the standard rent is calculated
K G Raghavan says it should be decided after the standard rent is determined under section 7 of the act.

sundaravadhanan asks It is told that the new act enables evasion of revenue and property tax in as much as there is a bifurcation of rent and charges for furniture and amenities.Is is true?
K G Raghavan says i do not see any such scope under the new law.

nvram asks if the rent received for commercial area is more than Rs. 3500/-, is the act applicable.
K G Raghavan says the application of the act is determined not on the basis of rent received but the deemed rent on the date of commencement of act or the standard rent. if such rent execeeds 3500 rupees to part A areas, the rent act will not apply.

madhavan asks well your answer to Mr Arun answers most of my querries , what are the flipsides or negative issues of this act
K G Raghavan says [1] the flip side or the negative issues in the act is that, there is a wide spectrum of powers conferred on rent controllers, which experience tells us, is not likely to be satisfactory.

ramesh asks what is standard rent and how is it calculated
K G Raghavan says standard rent is determined under section 7 of the act, it provides for a rate of return of 10% of the aggregate of the cost of construction and market price of the land as on the date of commencement of the act. The criteria to determine the cost of construction and value of land is set out in section 7 (2).

lawgraduate asks Sir, do you think the new rent act is an extreme step, where protection of tenants has been watered down to a point, where the tenant has almost no protection in law?
K G Raghavan says i do not think so. the rent control law till now was being misused to the point of becoming a source of harrasment to the landlord, which has had adverse consequences on building activity itself.the new law in my view maintains a just balance.

arun asks what way this act is advantagesto the landlords ?
K G Raghavan says [1] it assures the landlord a fair return, [2] it provides for eviction of tenants, removing the various obstacles that had been placed under the old law,[3] assures the landlord payment of the rent by the tenant [4] imposes duties on a tenant as specified in part B of Schedule V of the Act.

Raj asks Is it advisable to take away protection that was hitherto available to tenants by the new Rent Act.
K G Raghavan says the protection afforded by a rent act is not a right.in the larger interest of the economy, i see no no reason for the continuance of unjust protection afforded by the old law which was avowedly only for a limited duration, but which came to be continued from time to time.

Aruna asks Please explain Section 27(2)(d). A tenant in one case has kept the premises locked for 2 1/2 years after having occupied the same earlier. Can he be evicted on this ground
K G Raghavan says under section 27 (2)(d) if a tenant has not occupied a premises for a period of two years, the landlord has a right to evict the tenant.but such non occupation must be without reasonable cause. if a tenant has kept the premises locked for 2 a half years, without reasonable cause, he can be evicted.

Aruna asks I have given vacant land on lease admeasuring 5000 sq.ft. for commercial user. Considering the definition of premises, can I file a suit for ejectment?
K G Raghavan says the term premises means land not used for agricultural purposes. Since the land in the instant case exceeds 14 sq metres, an ejectment suit would lie. This rent act will not apply.

sundaravadhanan asks Does the new rent control act shift the burden and olace the same on the land lord as told by the ex BJP MLA premila Nesargi.
K G Raghavan says the rent act in certain cases does shift the burden from the landlord to the tenant, this is significant in section 27 (2)(r) of the act, which requires the court to presume that the premises is required by the landlord when affidavit is filed.

Aruna asks Will non registration of an agreement mean that the provisions of the new Rent Act will not be applicable or is the consequence penalty under Section 54(i)? What happens in a situation under Section 4(3) of the Act?
K G Raghavan says the section 4 of the act requires a tenancy agreement to be in writing. the act does not render a tenancy which is not in writing as being void. the requirement of depositing with the prescribed authority, that is,the controller is in respect of tenancies created before 31.12.01, and where such tenancies are not in writing. in my view, the mere fact that violastion of section 4(2) is an offence punishable under section 54 (1)will not render such a agreement to be un enforceable.

raman asks sir, i am a landlord with a tenent who refuses to evict for the last 3 years - he has been in the property for the last 6 years . How does this new act help me solve my crisis
K G Raghavan says [1] is your premises residential or non-residential? [2] what is the standard or deemed rent? [3] depending on the above, consider whether you can fit in your case under any of the sub clauses (a) to (s) of section 27 (2). if it is so, then, under section 70 (2)(b) the proceedings will be governed by the new act.

Raj asks What is the procedure for a landlord to register the lease deed? Is it necessary for the landlord to file a copy of the lease deed at the time of registration with the Controller
K G Raghavan says the registration of a lease deed is a matter governed by the transfer of property act and the registration act. The lease deed has to eb registered in accordance with the registration act paying the appropriate stamp duty.

nkolar asks sir, regarding non residential premises would not the restriction regarding the quantum of rent also apply and not only the restriction as to the plinth area?
K G Raghavan says with regard to non-residential premises, the restriction would be both with regard to the rent and area.

Aruna asks Please explain the proviso to Section 12(1) of the Act. Does this conflict with Section 14(c)? How do you reconcile this conflict?
K G Raghavan says there is no conflict between both provisions, proviso to section 12 deals with tenancies entered into after the commencement of the act, while, section 14 (c) deals with premises constructed after the commencement of the act.

Dilara asks Good evening Sir
K G Raghavan says good evening

arun asks the state government`s spanking new Karnataka Rent Rules 2001, through power exercised under the Karnataka Rent Act 1999. It will come into effect from December 31 when the old rules expire is it true sir ?
K G Raghavan says yes, in fact they have come into force from 31 .12.01 by notification bearing no: 24 bhanivi.

vadivelu asks Mr.Raghavan, when an owner is faced with a belligerent corporate tenant, and a case filed in a court could take upto 8 years to come up for a hearing, what recourse would he have?
K G Raghavan says examine section 27 closely, and see if the tenant could be brought under any of the sub-clauses of section 27 (2).It will make the life of the landlord less miserable.

arun asks all tenants and landlords will have to file their tenancy agreements, or returns, within a period of 90 days, in a prescribed form. is it true?
K G Raghavan says The rules require the filing of the forms within 90 days in cases falling under the proviso to Section 4 (3).

raman asks sir , i have taken leave to chat with you , can you please tell me what i should do to evict my tenent who has not even paid me rent for the last 20 months - we are @ jaynagar . I can also meet up with you if you can give me your contact details
K G Raghavan says your case seems to be covered under section 27 (2)(a)of the act.

madhusudhana asks How will a tenant enforce the Fifth Schedule Part A upon failure of landlord to carry out the same?
K G Raghavan says the obligations of a lanlord under part A of the V schedule, can be enforced by having recourse to section 47 (2) of the act that is by making an application to the controller, who after making necessary enquires can pass an order permitting the tenant to make the repairs, and deduct the cost from the rent payable subject to restriction contained in the proviso to section 47 (2). The deduction cannot exceed half of the rent payable by the tenant for that year, and the balance can be recovered in the subsequent year at a rate not more than 25% of the rent for the month.

nvram asks how do we work deemed rent / standard rent as per the act.
K G Raghavan says the standard rent has to be worked on the basis of the criteria set out in section 7(2)

arun asks Extension of the 90-day deadline will be under the discretion of the rent controller and penal provisions will be invoked in case of non-compliance. what are the penal provisions?
K G Raghavan says the extension contemplated in rule 4 (2) proviso is for a sufficient cause. as to what constitutes sufficient cause is a question of fact and support can be had from the interpretation given to this expression under section 5 of the limitation act.

ramesh asks can a land lord claim from the tenant the property tax that he paid?
K G Raghavan says i see no provision under the act to do this.

nvram asks If the tenent is a proprietor and is conducting business in more than one name and also allowing his children to do business in different name, can this be a reason for eviction.
K G Raghavan says section 27 does not provide for a contingency of this kind

madhusudhana asks Dont you think that any rent control legislation goes against the very ingrain of a landlord to lease out a property and evict the tenant as and when he deems fit? After all, he is the owner of the property?
K G Raghavan says rent control law is a social welfare legislation and on the broad princple that private rights should yeild to public interest, rent control law can be sustained.

Raj asks How long would you perceive proceedings would go on considering the changes that have been introduced under the new Act
K G Raghavan says i think the proceedings should be shorter than the proceedings under the old act.

jaya asks welcome to sify chat sir, what areas come under Part A as per the act as i have rented out a commercial @double road for rs. 15,000 p.m. so will this act apply in my case
K G Raghavan says double road is in bangalore, and therefore comes in part A, i do not know the extent of the premises, and hence in the absence of determination of standard rent or deemed rent, applicability of the act cannot be decided.

nvram asks After partition of HUF, is the tenent under obligation to enter into a fresh agreement with the new owner of premises-if the tenent is not willing to enter into an agreement, can this be a reason for eviction.
K G Raghavan says the act does not contemplate a newe agreement with a change in ownership. the concept of attornment of tenancy will be attracted.

bindu asks sir,we are NRI s and we have finalised to buy a commercial property on brigade s road . The intention here is to invest on commercial property and lease the same out . What should i bear before i finalise the buyout? your advice please
K G Raghavan says check on title and terms of tenancy.

Prasad Bidappa asks what are Things included in the list for which a landlord can charge rent ?
K G Raghavan says besides the rent a tenant is liable to pay the following, [1] a maximum of 15% on amenities as provided in schedule IV, [2] maintenance charges at the rate of ten percent of the rent [3] pro rata property tax in relation to the premises [4] amount paid by the landlord towards the electricity or watrer charges consumed by the tenant or any other charges which maybe levied by a local or other authority which is ordinarily payable by the tenant.

Prasad Bidappa asks Is rationalisation , take place with the implementation of these rules ?
K G Raghavan says yes to a certain extent. if you mean by rationlisation, the balancing of rights.

sundaresh asks Several state rent laws seem to have provision for registration of rent agreements already but this seems to be the first case where the enforcement seems to be stingent and infact more than that of the maharashtra rent control act.Is it true?
K G Raghavan says i have not studied the mahatrastra rent act, so iam unable to comment on the same.

Prasad Bidappa asks what way these rules are much better than the Delhi Rent Control Act ?
K G Raghavan says i have not studied the delhi rent act in detail, therefore i am unable at this point of time to make a comment on the comparitive merits and demerits

Prasad Bidappa asks A landlord or tenant will have to apply in triplicate in the prescribed form for change in rent after which it will be referred to a valuer who will inspect and verify the application . will this provision lead to confusion.
K G Raghavan says the provision by itself will not lead to confusion, as to how efficiently it will work in implementation is what we will have to wait and watch.

sundaresh asks is there anything under the rules as to who is a rent controller.Is he a judicial member or an executive authority?
K G Raghavan says for certain areas the rent controller should be the assistant commissioner, for certain othedr areas, it is the senior tahsildhar, and in the reminder areas it is the tahsildhar, please see section 23 of the act.

krishnan asks we a group of 45 investors realise that the new act is favourable more to landlords, but would nevertheless have your advice to proceed on this
K G Raghavan says it is true that the new act is more favourable to the landlord than the old act.

supandi asks raj s question was with regard to registration with the CONTROLLER under the Act and not the sub-registrar
K G Raghavan says there is no registration of the tenancy agreement with the controller.

noor asks hallo how are u...wishin u a happy new year
K G Raghavan says same to you

sarah asks How do you reconcile Section 27(2)(d) (i) and (ii)? Refer question raised by Aruna
K G Raghavan says section 27 (2) (d)(1) is applicable to a case of a tenant or his family, whereas (ii) is restricted to non-occupation of the premises by the tenant.

rudramma123 asks Please respondtomesir
K G Raghavan says what is your question?

RAM asks sir, we believe the hire charges towards furnitures and fixtures cannot exceed a certain percentage of the lease rentals. is this true; if so, what is the percentage and consequences of default?
K G Raghavan says it should not exceed 15% of the rent as per section 8 (1)(a) of the act.

lawgraduate asks Between 1 to 10, how would you rate the new rent act and the old rent act in terms of its practical applicability and use for both land and tenant.
K G Raghavan says between 5 and 7

nvram asks will the act be applicable for commercial premises in Bellary where the rent paid is Rs. 3,850/- per month. The area of the premises is about 630 sq ft.
K G Raghavan says the applicability of the act depends upon the determination of the standard rent or the deemed rent and you may accordingly apply section 2(3)(e) of the act.

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