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Delhi rent control

(Querist) 13 January 2011 This query is : Resolved 
I am a 2nd year LLB student myself, in 2009 i along with one another boy acquired 2 rooms set in delhi ( in Outram Lines , Kingsway Camp). We entered into written agreement(though not registered)with landlady according to which the rent was fixed at 11500 per month and 11500 was also deposited as security.....the agreement expired in oct 2010, it is worthwhile to note that there was no mention in the agreement for increase in rent after one year in case we mutually agree to carry on for another one year...nor there was anything mentioned either in favour or against further carrying on for another year.

now in oct 2010 we mutually agreed orally to continue. further landlady insisted on increase in rent which was again orally and mutually agreed to take place after few months..the quantity of increase in rent was not mutually agreed at that time, now in this Jan 2011 when this issue to increase rent is raised...then i and my housemate is insisting that rent to be increased from Rs.11500 to Rs.12000 as we are already paying high rent.....on the other hand landlady is insisting 10% increase in rent which means Rs.12650, they are insisting on us that it is a rule to increase 10% rent in Delhi.

Now my question to you is does such kind of law exists --- according to which in Delhi after every year rent of 10% in residential places increases? If such law exists then is it an absolute rule, in other words in all circumstances rent of 10% increases.....or 10% is the maximum ceiling of increase allowed by legislature and legislature has left it on the people to decide mutually themselves that what percentage they want to incresase subject to maximum of 10% increase.
Lots of confusion exists on this issue as landlords in delhi thinks that it is there absolute right to get 10% increase...Please throw light on this issue and clarify it.....any other advise is most welcomed.

R.Ramachandran (Expert) 13 January 2011
Dear Mr. Gaurav,
If the rent is Rs. 11500/- then the same would not come under Delhi Rent Control Act.
It is not clear whether your agreement for tenancy is for what period - below 12 months or above 12 months.
If the agreement is for more than 12 months then the agreement is compulsorily registrable. If not registered then you would not be in a position to claim any benefit from that.
If the tenancy is for less than 12 months, then unless you mutually agree for a rent (increase or no increase 10% increase or 5% increase) you will not be able to continue in tenancy.
No law prescribes what should be the annual increase. Some owners may not even continue you in the tenancy even if you would like to give 20% increase. It is the owner's choice, unless otherwise specifically provided in the agreement.
Therefore, you have to strike a bargain. If the quoted rent does not suit you, then you have to look for another place.
Gulshan Tanwar (Expert) 13 January 2011
Whether you have paid security to the same Landlady;

Also what exactly you want right now?

Or go to Vijay Nagar, it is much cheaper than Outram Lines or Just opposite the Faculty the flats which are situated they will charge you less than what you are paying right now.

Non-registration will operate in your favour, play a tactic with Llady that due to non- registration under Registration Act, a case can be initiated against you and if you want not to face the consequences then let us remain in the same position for the next year else we are going but also filing case against you.

This is the tactic... and being a lawyer you must give some punch:) Happy Lohri

Saying so as I am also from CLC.
Gaurav Nanda (Querist) 14 January 2011
Yes the security is paid to the same landlady and it is mentioned in the agreement also. The agreement is for 11 months which expired in Oct 2010 ........further agreement says that landlord after giving us time/notice of minimum 30 days can ask us to vacate..........further we can also vacate anytime by giving 30 days notice.

so incase we vacate we would be doing so in in Feb. end........what we want is only that rent should increase only upto 12000 and not more and i know only way is bargain.
Now it was agreed to increase rent from Dec...what amount to increase it was not settled.....according to them it was 10%......according to us it was 500. Due to some cicrcumstances we only paid 11500 i.e. old rent in Dec and it was mutually agreed that in jan the increased rent of both dec and jan will be paid (arrears of increased rent but what % increase in rent was again not setteled)......but again in jan due to winter holidays in university,i am out of station and since the rent was not settled the old amount of rent was paid in Jan which was handed over by my roommate.I will be in Delhi in 4/5 days.

Now this is what i want ---- incase the land lady asked us to vacate then we will be vacating in Feb 2011( 30 days notice)....so we will be required to pay rent of Feb also,plus increased arrears of rent also of Dec and Jan. Now we want to pay maximum of Rs.500 increased arrears for month of Dec, + 500 for Jan and Rs 12000 as total rent of the month of Feb...i.e. only Rs. 500 increase for the month of Feb and then finally leaving the house. Now my question is can the landlady compel us to pay 10% increase for month of Dec, jan (increased arrears) + 10% for Feb.......when the increased amount was never settled? or can we leave by just paying Rs. 500 increase per month....This is the main reason that i asked you earlier question that do we under law have a duty and landlords a right to have increase of 10% every year or not?
Gaurav Nanda (Querist) 14 January 2011
Yes the security is paid to the same landlady and it is mentioned in the agreement also. The agreement is for 11 months which expired in Oct 2010 ........further agreement says that landlord after giving us time/notice of minimum 30 days can ask us to vacate..........further we can also vacate anytime by giving 30 days notice.

so incase we vacate we would be doing so in in Feb. end........what we want is only that rent should increase only upto 12000 and not more and i know only way is bargain.
Now it was agreed to increase rent from Dec...what amount to increase it was not settled.....according to them it was 10%......according to us it was 500. Due to some cicrcumstances we only paid 11500 i.e. old rent in Dec and it was mutually agreed that in jan the increased rent of both dec and jan will be paid (arrears of increased rent but what % increase in rent was again not setteled)......but again in jan due to winter holidays in university,i am out of station and since the rent was not settled the old amount of rent was paid in Jan which was handed over by my roommate.I will be in Delhi in 4/5 days.

Now this is what i want ---- incase the land lady asked us to vacate then we will be vacating in Feb 2011( 30 days notice)....so we will be required to pay rent of Feb also,plus increased arrears of rent also of Dec and Jan. Now we want to pay maximum of Rs.500 increased arrears for month of Dec, + 500 for Jan and Rs 12000 as total rent of the month of Feb...i.e. only Rs. 500 increase for the month of Feb and then finally leaving the house. Now my question is can the landlady compel us to pay 10% increase for month of Dec, jan (increased arrears) + 10% for Feb.......when the increased amount was never settled? or can we leave by just paying Rs. 500 increase per month....This is the main reason that i asked you earlier question that do we under law have a duty and landlords a right to have increase of 10% every year or not?
Gulshan Tanwar (Expert) 15 January 2011
Well the maximum limit is 10% per annum;

and there are other instances also - but they are under DRC and the landlady is smart enough as she is in this profession for more than 20-30 years.

I am just showing you one path and hope you will be getting it.

" A person asked Priest that whether he can smoke while praying and answer was big NO & on other hand a Lawyer asked to the same Priest whether he can pray while smoking and the answer was big YES"

Can you know the difference and if you had it then go for it. Good Luck


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