Prakash Epilli 24 May 2016

Increase in rent in pagdi system

Hello, We live in Kurla since last 25 years under the pagdi system. We were paying a monthly rent of 100 rs till last year. Since july 2015 he has stopped accepting the rent stating that he need increased rent @ 9% p.a (5% as per Bombay Rent Act 1987 and 4% as per Rent Control Act 1999) with effect from 2000. Along with the rent he has also demanded the municipal Taxes that he has paid since 1991 till 2016. I would like to know what does the law say. Should i pay @ 9% or @ 4% as per my lawyer.Kindly help Thank You

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3 Replies

Kishor Mehta (CEO) 24 May 2016

Sir,

The rent can be incresed by 4% annually as per the Maharashtra Rent Control Act 1999.The tenant is supposed to pay the Municipal taxes, however it depends on the agreement between the landlord and the tenant.

Good Luck,

Kishor Mehta

Prakash Epilli 25 May 2016

Thank you for the reply sir,

I will be greatful to you if you help me understand section 7(14)(a) and (b)(ii) of MRCAct 1999 in which it has been mentioned that 5% increase on the standard rent is allowed. I want to know whether landlord can club this 5% and 4% ( according to Sec 11 of MRC act 1999) and demand an 9% annual increase in the rent. Please help me in this regards to understand the law.