Are some premises exempted from the Rent Control Act?

I have recently constructed a building which is suitable for small enterprises. I would like to know whether such premises can be exempted under the Rent Control Act.

—Name withheld on request

We presume that you also own the land on which the new building has been constructed. A landlord in Maharashtra can, under the Rent Control Act, 1999, rent out the building to various tenants as agreed upon in a commercial agreement between a landlord and the tenant.

The Act is not applicable where premises let to foreign missions, international agencies, multinational companies and public or private limited companies having a paid-up share capital of more than 1 crore. You should check the other exemptions before renting out the premises.

My brother rented out his apartment to a family in 2021. The next year, he found that the property was being used by the tenants for commercial purposes. Can this be reason enough for my brother to send an eviction notice to the tenants?

—Name withheld in request

We assume that the premises was originally let out to the tenant for residential purpose. Subsequently, the tenant has altered or changed the use of the premises from residential to carry out business activities from there. Such change is expressly barred under the Maharashtra Rent Control Act, 1999, and your brother can send an eviction notice to the tenant. If the tenant resists, then your brother will have to initiate proceedings before the competent court.

A Hindu donor, whom I know, gifted his property by way of a registered unconditional gift deed but sold the said property after a few months by way of a sale agreement. Which document—gift deed or sale agreement—will prevail in such a case?

—Name withheld in request

We understand from this query that the donor is a Hindu and has executed a registered deed of gift in respect of his property in favour of the donee unconditionally. We have presumed that the donor has by virtue of the registered deed of gift gifted and transferred his entire right, title and interest in the property to the donee absolutely and forever.

The donor has transferred all his right, title and interest in the property and thus ceases to have any right, title and interest in the property upon execution of deed of gift. The title to the property now vests with the donee.

Therefore, any such subsequent sale of property by the donor which was subject matter of the deed of gift will be invalid as the purchaser of the property will not acquire any legitimate right, title and interest in the property that has already gifted by the donor.

Aradhana Bhansali is partner, Rajani Associates.

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Updated: 16 Nov 2023, 11:24 PM IST

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