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(Guest)

Increase of rent in pagadi building.

Hello everyone.

We are the landlords of pagadi building in malad west , mumbai.

we have 26 tenants in our building, all resisdents not commercial..

currently we get rent at Rs 0.50/sqft. ( rs 125 for 250sqft area.)

which is too less in todays world.

we would like to know to what extent can we legally increase the rent by law.

we heard that the rent can now be increased to Rs 3 to 5 / sqft .

Is it true , if not then how much can we get by law.

thanks .



Learning

 2 Replies

Tripti Nagwekar (Owner)     10 September 2012

Dear Harsh,

Your pagdi building comes under Mah. Rent con. act 1999, and therefore you can not increase your standard rent and permissible rent at the prevalent market rent.  If you do so, you would go to jail as per following section of MRC act

Maharashtra Rent Control Act, 1999

10. Rent in excess of standard rent illegal.

(1) Save as otherwise provided in section 6, it shall not be lawful to claim or receive on account of rent, for any premises any increases above the standard rent and the permitted increases, unless the landlord was, before the coming into operation of this Act, entitled to recover such increase by virtue of, or under, the provisions of any of the repealed Acts or is entitled to recover such increase under the provisions of this Act;

(2) Any contravention of provisions of sub-section (1) shall be an offence punishable, on conviction, with imprisonment not exceeding three months or fine not exceeding rupees five thousand or with both.


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