CAIT HAILS REPEALING OF DELHI RENT ACT BY UNION CABINET  TODAY 

DEMANDED FORMATION OF EXPERT PANEL FOR FARMING NEW RENT LAW

The Confederation of All India Traders (CAIT), apex body of the business community hai hailed the decision of the Union Cabinet to repeal the Delhi Rent Act, 1995 today and termed it as a wise step of the Union Government to protect distributive character of trade of Delhi. “Since last eighteen years we were fighting against the provisions of Delhi Rent Act 1995 and were demanding amendments to protect traders and tenants from eviction of their current business place on frivolous ground of  “Bonafide Need” . It is a long battle and ultimately saner counsel prevail upon the Government and realising the ground realties; the Act has been repealed.-said CAIT National Secretary General Mr. Praveen Khandelwal while addressing a Press Conference today at New Delhi. 

The CAIT has complimented Union Urban Development Minister Shri kamal Nath, Law Minister Shri Kapil Sibal, Leader of opposition in Lok Sabha Smt. Sushma Swaraj and in Rajya Sabha Shri Arun Jaitley and Delhi Chief Minister Smt. Shiela Dikshit for their efforts in get the Act repealed and removing the hanging sword on tenants of Delhi.

It is remembered that CAIT, Delhi Rajya Vyapar Sangthan, Federation of Delhi Trade Association, Delhi Tenants Association, Tenants and Landlords Forum of Delhi, Forum of Social and Economic Justice and Traders and Tenants Association of Delhi were struggling since 1995. 

Mr. Khandelwal further demanded the Government to set up an “Expert Panel” consisting of Senior Government Officials and representatives of Traders, Tenants and Landlords to frame a balanced act to protect the interests of traders, tenants and landlords based on some amicable formula. The issue needs to be debated and legislated in a broader perspective. He has also demanded that like Rent Act in Maharashtra and West Bengal, there should be cut off date in Rent Act and a foolproof provision by which the rent may be increased in proportion to price index so that landlords must not be at receiving end. 

There are about 10 lakh traders in Delhi out of which about 5 lakh traders are conducting their business on rental properties and these 5 lakh traders provide livelihood to more than 20 lakh people in Delhi. Therefore, the Rent Act in Delhi assumes much significance as it will have wider impact on large number of people .

Mr. Khandelwal dismissed the argument of blaming the traders for paying a lower rent as he said that post independence Delhi was mainly comprised of leasehold properties which could not be divided and sold in parts. To overcome this restriction and to dispose of  the property in parts, a practice evolved whereby “Pugree” or “Key Money” which was equivalent to the then market price of the property was paid by the tenant to the landlord, making the tenant a defacto owner of the premises. A nominal amount was fixed as rent of the premises with the understanding that the premises could not be got vacated especially under the then prevailing rent act. Whenever a tenancy changed hands, “Pugree” was paid by the new tenant and the landlord. The concept of “Pugree” has been acknowledged by not only the landlords and the tenants, but the Courts and the legislature as well. In the year 1988, the then Government while taking cognizance of the report of economic Administration Reforms Commission and National Commission on Urbanization, amended the Rent Act provided a clause of a 10% increase in rent every three years.