The Rent Control Act governs the leasing activities. Each state has its version of the Act. The Act has been designed to protect the interests of the tenants and the landlords. Each state has their version of the Act, but the broad idea of the Act is to settle disputes between landlords (licensor) and tenants (licensee).
The Act aims to ensure that no wrongful eviction of tenants takes places. The Act contains various provisions for tenants facing deportation and dictates that no landlord can cut off or deny any essential supply or service enjoyed by a tenant, without just or sufficient cause.
Rent Control Act clearly states that any responsibility of registering an agreement for leave and license or letting out of any premises lies with the landlord. The onus of registering any and all agreements with a tenant concerning terms and conditions of the lease lies with the landlord. It is mandatory for the landlords to give a written receipt of any payments made by the tenants. In the event of the death of a tenant, the revenue is required to be issued in the name of a family member of the tenant. A landlord’s failure to provide a written receipt is a punishable offence.
In the Act provides that a landlord can recover the possession of rented premises if the premises is required for a bona fide reason. It also states that a landlord can recover the premises if a tenant has an alternate accommodation available. It is not uncommon that rented premises are in a dilapidated condition. The Act thus permits the landlord to reconstruct such buildings by the relevant laws.
This Act cannot be enforced if the premises have been sub-let to banks, public sector undertakings or any corporation established under the state or central Act. Further foreign missions, multinational companies, and international agencies do not fall under the ambit of this Act. The Act does not apply to private limited and public limited companies that have a paid-up share capital of INR one crore or above.