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Rent

Structure
under
Punjab Rent
Act, 1995
S. 6-16
JNURM requires:
• Reducing the stringency of controls by providing for:

a. fixation of rent either as agreed between the landlord and the


tenant or at a level which gives a remunerative rate of return to the
landlord;

b. increase in rent in existing tenancies;

c. periodic revision in rents;

d. setting a timeframe for to bring the rent in old/existing tenancies to


market level;

e. clear division of maintenance responsibilities between the landlord


and the tenant;

f. semi-contractual tenancies (like Limited Period Tenancy) or Leave-


and-License within the framework of the Rent Control Act;

g. explicit provision relating to inheritability of tenancy limiting


inheritability tospecified heirs and for a limited period; and

h. Introduction of sunset provisions regarding inheritability of premises


in the older areas of cities.
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What is payable under the PUNJAB
RENT ACT, 1995?
Rent
u/s 6
=Agreed Rent

Other Charges
u/s 7
• Electricity Charges,Water
Charges & Any charge
levied by local/other
authority which is
ordinarily paid by tenant
• Property Tax
• Maintenance Charges =
10% Rent

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Rent:
• Agreed Rent (U/S 6) emphasis on market forces
to determine the rent
• No interference by the Rent Controller unlike East
Punjab Urban Rent Restriction Act, 1949
• Emphasis is on ‘agreement’ than ‘fairness’ as the Act
by not conferring the power on controller has
practically done away with the concept of ‘fair rent’
• No ceiling fixed by Government

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Rent is not Static! Statutory increase
every year
• Agreed rent to increase by 5% for 2 years
• 3rd year increase and thereafter= dependent upon
CPI

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Besides statutory increase,
REVISION OF RENT: U/S 9
Decrease
• decrease ,
diminution or
deterioration of
accommodation

Increase @ 10% cent of cost, annually


• Expenditure for any improvement, addition or structural
alteration
• With or without consent of tenant
• Such cost should not have taken into account while
determining rent
• Following expenditure not to be included for revision:
• Decoration
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• Tenantable repairs bco’z (it’s the duty of landlord)
Procedure for revision and from
when is revised rent applicable?
• Notice of intention to revise:
- According to Schedule V
- Written
- Signed by or on behalf of landlord
- Manner= S. 106 of TPA
• Wef : date of improvement, addition or structural
alteration

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Payment of Rent and other charges:
• Time U/S 13:
- As agreed or (if not agreed)
- 15th of next month
• In case of default= Simple Interest @15 %p.a.
• Mode of payment:
• Cash  Written receipt is must  if no receipt= Action under
13(3)
• Postal Money Order
• Bank account, where details given by landlord

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If landlord refuses to accept the rent/ neglects
to give receipt / doubt as to whom rent payable
 Deposit of rent by tenant u/S. 14

• Deposit +Application:
- Premises for which rent+ charges payable 
identification of premises
- Period for which rent and charges are being
deposited
- Name and Address of landlord or person or persons
claiming to entitled to rent and charges
- Reasons and Circumstances for application

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Deposit of Rent and
Application by Tenant
to Rent Authority

Within 30 days of
Withdrawal of
receipt of notice –
Deposit by person so
complaint- landlord Complaint of Tenant
adjudicated by Rent
or other person : Refusal to accept
Authority (
entitled to rent- Rent though
opportunity of being
STATEMENTS : tendered- Without
heard to all persons
Reasons and any reasonable cause
named by tenant) –
Circumstances =
S.14 (3)
UNTRUE

Must be withdrawn
FORFEITURE U/s Opportunity of being Opportunity of being
within 5 years (S. 16
16(2) and 16 (3) heard to tenant heard to landlord
(2))

Fine = 2 months rent Fine = 2 months rent


Withdrawal is not an  part of it  part of it
ADMISSION (16(1)) compensation to compensation to
landlord tenant

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Pre requisites for valid Deposit :Time and
other mandatory conditions: S. 15

• Within 21 days of due date (s. 13)


• Mandatory intimation to landlord. Non intimation to
render deposit INVALID
• No false statement in tenant’s application for
depositing the rent and other charges.

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