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LAND REFORMS IN INDIA

Land reform refers to efforts in India to reform land ownership and regulation.

Land Reform refers to the government's redistribution of land from


landownersto landless people for agricultural or special purposes.

Land reform refers to the equitable redistribution of land with the goal of
increasing productivity and reducing poverty.

Land Reforms refer to the redistribution of Lands from the rich class to the poor
class.It involves change in ownership of landholding through abolition of
intermediaries and land ceilings.

There was a great need for land reforms in the country like India, where
majority of its population still depends on agriculture.

History of Land Reforms

Pre Independence

 Farmers did not own the land they cultivated under the British Raj;
instead, the land was owned by Zamindars, Jagirdars, and other landlords.
 The land was concentrated in the hands of a few people, and there were a
lot of middlemen who didn't have a vested interest in self-cultivation.
 It was common practice to lease land.
 Tenant exploitation was almost everywhere.
 The land was fragmented into very small parts for commercial farming,
which was one of the problems with agriculture.
 It resulted in inefficient use of soil, capital, and labour in the form of
boundary lands and boundary disputes.

Post Independence
A committee, under the Chairmanship of J. C. Kumarappan was appointed to
look into the problem of land. The Kumarappan Committee's report
recommended comprehensive agrarian reform measures.

In the post-independent era, the land reforms were classified as

 The Abolition of the Intermediaries


 Tenancy Reforms
 Fixing Ceilings on Landholdings
 Consolidation of Landholdings.

These were taken in phases because of the need to establish a political will
for the wider acceptance of these reforms.

Land Tenure system during British era

The Zamindari System or The Permanent Settlement:

Under the Zamindari system, a class of intermediaries known as zamindars or


landlords were recognized as the legal owners of the land. These zamindars
were responsible for collecting land revenue from the actual cultivators.

Zamindars were given the right to collect land revenue from the peasants in
their respective estates. They were required to pay a fixed sum to the British
government, and they retained the surplus revenue as their income.

The Zamindari system often led to exploitative practices by zamindars who


would extract high rents from tenants. This system resulted in a significant
portion of agricultural produce being siphoned off by intermediaries, leaving the
peasants in a vulnerable position.

The zamindars were used as intermediaries between the cultivators and the
state.
In the event that the zamindars failed to meet their obligations, the government
could sell their estates to pay their debts.

The Ryotwari System:

Under this system, the individual peasants or cultivators, known as "ryots" were
recognized as the owners of the land. They were directly responsible for paying
land revenue to the British government.

The revenue assessment in the Ryotwari system was based on the quality of
land and the nature of crops cultivated. The government fixed land revenue
rates, and ryots had the responsibility to pay these directly to the state.

This system provided a degree of security to individual farmers as they were


recognized as landowners. However, it also placed the burden of taxation on the
ryots, which could be oppressive in times of poor harvests.

The Mahalwari System:

Under this system, the entire village (mahal) was treated as a unit, and the
village lands were shared by the village communities.

Land was typically owned collectively by the village community, and the
responsibility for revenue payment was shared by the entire village.

The land revenue assessment in the Mahalwari system was usually based on the
productivity of the entire village or mahal. Villagers collectively paid the
assessed revenue to the government.

This system allowed for a more equitable distribution of the revenue burden
among the villagers. However, it required effective organization and
cooperation within the village community.

Components of Land Reforms (POST – INDEPENDENCE)

Abolition of the Intermediaries


 The abolition of the zamindari system, which removed the layer of
intermediaries between the cultivators and the state, was the first
significant legislation.
 This reform was relatively more effective than the others because it
succeeded in taking away the zamindars' superior land rights and
weakening their economic and political power in most areas.
 The reform was enacted to help actual landowners or cultivators.
 Abolition of such intermediaries not only improved conditions of
farmers by establishing their direct connection with the government
but also improved agricultural production.
 Almost 2 crore tenants became owners of the land they cultivated after
intermediaries were abolished.

Tenancy Reforms

 After the Zamindari Abolition Acts were passed, the next major issue
was tenancy regulation.
 During the pre-independence period, tenants paid exorbitant rents,
ranging from 35 percent to 75 percent of gross produce across India.
 Tenancy reforms were enacted to regulate rent, provide tenants with
security of tenure, and give them ownership rights.
 With the enactment of legislation (early 1950s) for regulating the rent
payable by the cultivators, fair rent was fixed at 20% to 25% of the
gross produce level in all the states except Punjab, Haryana, Jammu
and Kashmir, Tamil Nadu, and some parts of Andhra Pradesh.
 The reform attempted to either ban tenancy altogether or regulate rents
to provide tenants with some security.
 There was a radical restructuring of the agrarian structure in West
Bengal and Kerala, which gave tenants land rights.
Fixing Ceilings on Landholdings

 The Land Ceiling Acts were the third major category of land reform
legislation.
 In layman's terms, landholdings ceilings referred to a legal limit on how
much land a single farmer or farm household could own.
 The purpose of imposing such a ceiling was to prevent land concentration
in the hands of a few.
 In 1942, the Kumarappan Committee recommended the maximum size of
lands that a landlord could keep.It was three times the economic holding,
or enough to support a family.
 By 1961-62, all state legislatures had passed land ceiling legislation.
However, the ceiling limits varied from state to state.
 In 1971, a new land ceiling policy was developed to bring uniformity
across states.
 With the help of these reforms, the state was supposed to identify and
take possession of surplus land (above the ceiling limit) held by each
household, and redistribute it to landless families and households in other
specified categories, such as SCs and STs.

Consolidation of Landholdings

 The reorganization/ redistribution of fragmented lands into one plot was


referred to as consolidation.
 With a growing population and fewer job opportunities in non-
agricultural sectors, land pressure has increased, leading to a growing
trend of land fragmentation.
 Because of the land fragmentation, irrigation management and personal
supervision of land plots became extremely difficult.
 As a result, landholdings consolidation was implemented.
 If a farmer had a few plots of land in the village,those plots were
consolidated into one larger piece of land, either by purchasing or
exchanging the land.
 Except for Tamil Nadu, Kerala, Manipur, Nagaland, Tripura, and parts of
Andhra Pradesh, almost every state has passed legislation allowing
holding companies to merge.
 In Punjab and Haryana, land consolidation was required, whereas in other
states, consolidation was permitted on a voluntary basis if the majority of
landowners agreed.
 It saved the time and labour of the farmers spent in irrigating and
cultivating lands at different places.
 The reform also brought down the cost of cultivation and reduced
litigation among farmers as well.

LAND REFORMS IN POST - INDEPENDENCE INDIA


(CONSTITUTIONAL AMENDMENT) CONSTITUTIONAL
IMPERATIVES

Land reforms in post-independence India have been a significant policy


initiativeto address issues of land ownership, land redistribution, and socio-
economicinequalities. Several constitutional amendments were introduced to
support and implement land reforms in the country. Here are some of the key
constitutional amendments related to land reforms in post-independence India:

1. First Constitutional Amendment Act (1951):

This amendment inserted Article 31A and Article 31B into the Constitution.
Article 31A allowed for the acquisition of estates and other interests in land for
agrarian reforms and provided immunity to such laws from judicial review.
Article 31B allowed for the validation of certain land reform laws. It also added
the Ninth schedule to the constitution listing 13 states-land reforms acts and
providing that these acts would not be void merely on the ground that they
infringed any of the Fundamental rights.

2. Shankari Prasad v. Union of India (1951):

In the case of Shankari Prasad v. Union of India (1951), the facts revolved
around the constitutional challenge by Shankari Prasad Singh Deo, a landlord
fromOrissa. He challenged the constitutionality of the First Amendment Act,
arguing that it violated his fundamental rights, particularly the right to property.
The petitioner, Shankari Prasad, contended that the amendments violated his
fundamental rights under Article 31.ButSupreme Court upheld the amendment's
validity.

3. State of Bihar v. Kameshwar Singh:

The case revolved around the Bihar Land Reforms Act of 1950.
KameshwarSingh, a prominent landowner in Bihar, challenged the Act's
provisions, which aimed at abolishing certain land rights and redistributing land.
Kameshwar Singh contended that the Act violated his fundamental rights under
Article 19(1)(f) and Article 31(2) of the Indian Constitution.

The main issue was whether the Act, which sought to implement land reforms
for social justice, was in conflict with fundamental rights. The Supreme Court
upheld the constitutional validity of the Bihar Land Reforms Act. The Court
recognized that land reform measures were essential to achieving social justice,
as outlined in the Directive Principles of State Policy. It ruled that the Act was
consistent with these principles and not in violation of fundamental rights.

4. Waman Rao v. Union of India:

This case challenged the First Amendment Act, 1951, Article 31A, 31B, and the
Ninth Schedule. Supreme Court ruled that these provisions did not damage
theConstitution's basic structure. Specified that the Ninth Schedule items were
not void, even if inconsistent with fundamental rights

5. Expanding Land Reforms:

The Fourth Amendment was a part of the broader land reform initiatives in
India, which sought to address issues of land inequality, landlessness, and rural
poverty. It aimed to redistribute land to landless and marginalized communities,
promote agricultural productivity, and reduce the power and influence of
traditional landowners. The Fourth Amendment to the Constitution of India was
enacted in 1955.

It curtailed the scope of certain property-related fundamental rights that were


guaranteed under Articles 19(1)(f) and 31. This change allowed the government
to enact laws that could regulate or restrict property rights without violating
fundamental rights. It empowered the government to enact laws for the
acquisition of estates, including those held by jagirdars (landlords) and
zaminadars (landowners) who had large landholdings. This was a significant
step in India's land reform process aimed at reducing the concentration of
landownership in the hands of a few.

6. Karimbil v. State of Kerala:

Kerala had implemented land reforms to redistribute land from large


landowners to landless peasants and labourers. The petitioner, Mr. Karimbil,
challenged these reforms, arguing they violated his right to property under
Article 31A(1)(a) of the Constitution.

Article 31A(1) (a) was added to the Indian Constitution in 1951 to protect land
reform laws from being declared unconstitutional due to violations of the right
to property.
Mr. Karimbil argued that Article 31A(1) (a) provided inadequate protection and
did not cover all land reform measures. He contended that certain provisions of
Kerala's land reform laws exceeded the scope of Article 31A(1)(a), making
them unconstitutional.

This case highlighted the insufficiency of Article 31A(1)(a) in safeguarding all


land reform measures. This case prompted the Indian government to take
action.In 1956, the Constitution (Seventh Amendment) Act was enacted to
expand and strengthen Article 31A.

7. Constitution (Seventh Amendment) Act, 1956:

Expanding the Definition of "Estate": This amendment went beyond the


previous definitions of "estate" in land reform laws. It broadened the scope of
what could be considered an estate, ensuring a more comprehensive approach to
land reform.

The amendment explicitly included land held under the Ryotwari settlement
within the definition of "estate." By incorporating Ryotwari land, the
amendment aimed to cover a wider range of agricultural land in land reform
efforts.

Inclusion of Land for Agriculture or Ancillary Purposes: Another significant


aspect of this amendment was the inclusion of land heldfor agriculture or
ancillary purposes within the definition of "estate."

8. Seventeenth Amendment Act, 1964:

 It introduced provisions related to the imposition of a ceiling limit on the


acquisition of estate lands.
 The amendment also mandated that compensation for acquired land
should not be less than the market value.
 The definition of "estate" was expanded to include various types of land,
such as those held under Ryotwari settlement, as well as land used for
agriculture or ancillary purposes.
 These provisions aimed to prevent excessive landholdings, promote
equitable land distribution, and ensure fair compensation for landowners
affected by acquisition.

9. Twenty-Fifth Constitutional Amendment Act (1971):

This Amendment provided that any law made to give effect to the Directive
Principles contained in Article 39 (b) or (c) cannot be challenged on the ground
of violation of the rights guaranteed by Articles 14, 19 and 31.

10. Forty-Fourth Constitutional Amendment Act (1978):

It deleted the right to property from the list of Fundamental Rights and made it
only a legal right. It also provided for the protection of laws relating to land
reforms from legal challenges.

This amendment inserted Article 300A into the Constitution. Article 300A
provides a safeguard by ensuring that any deprivation of property must be
carried out in accordance with the authority of law. This means that the
government cannot arbitrarily take away an individual's property but must
follow a legal process.

URBANISATION

Urbanization is the immigration of people in huge numbers from rural to urban


areas and this process happens due to the concentration of resources and
facilities in towns and cities.

Most of countries focus on development of cities instead of rural areas.


Consequently, the urban areas are equipped with infrastructure, public facilities
as well as provide employment opportunities compared to the rural areas.
Therefore, inhabitants are more attracted to migrate in cities to avail hi tech
facilities, enhance their lifestyles and ultimately these activities raise numerous
urbanization issues.

The main causes of Urbanisation are:

 Industrialization: Due to the industrial revolution many people migrated


from rural areas to urban areas for better employment opportunities.
 Commercialization: Urban areas provide better business opportunities as
compared to rural areas.
 Social Benefits and Services: Urban areas provide better educational
facilities, better living standards, better sanitation and housing, better
health care, better recreation facilities, and better social life in
general.Rural areas lack social benefits and services, so people are
migrating to urban areas.
 Employment Opportunities: Services and industries in urban areas
generate higher value-added jobs, and this leads to more employment
opportunities.
 Modernization: Urban areas are becoming more tech-savvy with highly
sophisticated medical facilities, communication, knowledge,
infrastructure, and other social amenities. Many people think that they
can live a better life in cities. Moreover, people adopt changes in their
living modes like dressing, food, habits, etc.
 Rural-urban Transformation: Rural areas adopt the urban culture and
eventually become urban areas, and this is called rural-urban
transformation. This leads to increased productivity and economic
growth.

Push factors

 unemployment
 lower wages
 crop failure
 poor living conditions
 poor health and education services
 few facilities
 natural disasters
 civil war

Pull factors

 more jobs
 higher wages
 better living conditions
 better education and health services
 better facilities
 less chance of natural disasters

Issues due to urbanization

1. Overcrowding: Rapid urbanization often leads to overcrowded cities, which


can strain resources and infrastructure.

2. Housing Shortages: Urban areas may struggle to provide adequate housing


for the growing population, often leads to slums and informal settlements.
Housing shortages can result in poor living conditions and homelessness.

3. Infrastructure Deficit: Urban infrastructure, such as water supply,


sanitation, and waste management, may not keep pace with population growth.
This can lead to inadequate access to basic services.

4. Traffic Congestion: Increased vehicular traffic in cities can result in traffic


congestion, longer commute times, and air pollution. It also contributes to
increased fuel consumption and greenhouse gas emissions.
5. Air Pollution: Urban areas often have higher levels of air pollution due to
industrial activities, vehicular emissions, and construction. Poor air quality can
have adverse health effects on residents.

6. Water Scarcity: Urbanization can strain water resources, leading to water


scarcity and competition for clean water sources. This can result in water
pollution and inadequate access to safe drinking water.

7. Waste Management: Urban cities produce a lot of waste on a daily basis


which they cannot properly dispose of.Inefficient waste management systems
can lead to environmental pollution and health hazards.

8. Social Inequality: Urbanization can increase social inequalities, as


marginalized groups may face barriers to accessing education, healthcare, and
employment opportunities.

9. Loss of Green Spaces: Rapid urban development often leads to the loss of
green spaces and natural habitats, which can have ecological consequences and
reduce the quality of life for urban residents.

10. Health Issues: Urbanization can impact public health in various ways,
including increased stress, mental health issues, and the spread of infectious
diseases in densely populated areas.

11. Resource Consumption: Urban areas typically have higher resource


consumption rates, including energy and food. Sustainable resource
management is crucial to mitigate environmental impacts.

12. Land Use Change: Natural forests and grasslands are converted into
agricultural and grazing areas for crop and livestock production, to urban and
industrial land, and to infrastructure (roads, dams, etc.).

13. Higher Rates of Urban Crime: Many poor people who migrate to cities,
for better opportunities, often indulge in crime to meet their daily needs. Not
only the poor or slum dwellers; youngsters from well-to-do families also resort
to crime in order to make a money and to meet their requirements of a lavish
life.

Schemes/Programmes Related to Urban Development:

 Smart Cities:Launched in 2015.


 AMRUT Mission:Launched in 2015.
 Swachh Bharat Mission: Launched in 2014.
 HRIDAY:Launched in 2015.
 Pradhan Mantri Awas Yojana: Launched in 2015.
 Pradhan Mantri Garib Kalyan Yojana: Announced in 2020
 Atmanirbhar Bharat Abhiyan (Self-Reliant India): Announced in 2020

RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND


ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013

Land acquisition in India refers to the procedure by which the Union or state
government acquires private land for:

 industrialisation,
 the advancement of infrastructural facilities,
 urbanisation of privately owned land,

and offers compensation to the impacted landowners as well as their


rehabilitation and resettlement.

The Act came into force on 1st January 2014. The Act was brought to provide
fair compensation to the affected persons and bring transparency to the process
of land acquisition in the country.

Need for the Land Acquisition Act 2013


Urbanization and Industrial Growth: The need for urbanization and land has
increased due to factors such as industrial expansion, globalization, and the
establishment of Special Economic Zones.This demand for land is essential for
economic progress and industrialization.

Protection of Landowners: To ensure that landowners whose property is


acquired by the government are treated fairly, it is crucial to provide reasonable
compensation, relocation, and restoration plans. The goal is to balance the
necessity for land with the protection of the rights and well-being of affected
populations.

Challenges with "Public Purpose": The interpretation of "public purpose" has


been a significant challenge.The broad definition of this term by the Supreme
Court has led to cases where land is acquired for projects that may not serve
genuine public purposes. This lack of precise criteria has been a key concern.

Relocation and Rehabilitation: Prior laws lacked provisions for the relocation
and rehabilitation of individuals affected by land acquisition. Even if
compensation was provided, affected individuals faced significant challenges.

Lack of Compensation Standards: The previous laws did not establish a clear
and detailed process for determining compensation. Compensation was often
based on the local market's value, but there were no specific rules in place. This
sometimes resulted in landowners being unfairly compensated.

Permission from Property Owners: The earlier legislation did not require
owner's permission for government acquisition of land. This led to instances
like Nandigram, where land was acquired with short notice, causing disputes
and protests, especially in cases of setting up Special Economic Zones.

Abuse of the Urgency Clause: Section 17 of the 1894 law, which addresses the
urgency clause, was significantly flawed. This clause was often abused by the
government and private businesses, allowing them to expedite land acquisition
without proper justification or scrutiny.

Objectives

 To ensure a transparent process for acquiring land, in consultation with all


the stakeholders and local governing bodies.
 To ensure minimum displacement of the existing population staying on
the land.
 To provide fair compensation to the families who are affected or whose
land has been acquired or livelihood has been affected, because of the
land acquisition.
 To provide adequate provision for rehabilitation and resettlement of the
families affected.

Applicability of the Act

 The government acquires land for its own use, possession and control
including public sector enterprises.
 The land is acquired by the government with the ultimate goal of
transferring it to private companies for a specific public purpose.
 Projects involving public-private partnerships are included in LARR
2013, but excludes land acquired for state or national highway projects.
 The land is acquired by the government for immediate use by private
companies for public purposes.
 The provisions of the Act does not apply to acquisitions under 16 existing
legislations including the Special Economic Zones Act, 2005, the Atomic
Energy Act, 1962, the Railways Act, 1989, etc.

Key Features of the Act

Consent clause:
 When government acquires the land directly for ‘public purpose’ consent
of the land owner is not required.
 However, when the government acquires the land for private companies,
the consent of at least 80% of the project affected families shall be
obtained through a prior informed process.
 In case of acquisition of land for public-private project then the consent
of at least 70% of the affected families should be taken.

Emergency acquisition:

Under this,the land acquisition can be expedited if it relates to national defence,


security and rehabilitation of affected people from natural disasters or
emergencies. In such situations, the land is acquired without following the
whole process of Social Impact Assessment and Public Hearing is waived off.

Limits on acquisition:

The act does not allow acquisition of land under multi cropped area.The act also
mandates that in case of acquisition of multi cropped area under exceptional
circumstances, an equivalent area of cultivable wasteland shall be developed by
the state for agricultural purposes.

In case of acquisition of other agricultural land, total acquisition should not


exceed the limit as specified by an appropriate authority. These limits shall not
apply to linear projects which include projects for railways, highways, major
district roads, power lines, and irrigation canals.

Compensation:

 The claimant shall be entitled to compensation based on the market value


of the land as of the date of the preliminary notice.
 For land acquired in rural areas, the market value would be multiplied by
a factor of one to two times, while for land acquired in urban areas, the
market value would be multiplied by at least one.
 In addition to the compensation, an award of solatium equivalent to 100%
compensation amount shall be paid to any person whose land has been
acquired.
 The market value of the land is determined by the average sale price for
similar types of land situated in the nearest village or nearest vicinity
area.
 The compensation can also be a consented amount, in case the land is
acquired for private companies or public-private partnership projects.

Process of Land Acquisition

1. Social Impact Assessment

Before determining whether the land shall be acquired or not, a social impact
assessment is conducted on the identified land by the Government in
consultation with local bodies, Panchayat etc. to assess the social impact of the
acquisition, its cost, and how it shall be addressed or compensated.

The Social Impact Assessment study should be completed within six months
from the date of its commencement.

2. Preliminary Notification

The acquiring authority issues a preliminary notification in local newspapers


and official gazettes, indicating its intention to acquire the land. This
notification includes details of the land and the purpose of acquisition.

3. Public Hearing
A public hearing is conducted to allow affected persons to express their views
and concerns regarding the proposed acquisition. The views expressed in the
public hearing are considered in the decision-making process.

4. SIA Report and Final Declaration

Based on the Social Impact Assessment and the public hearing, a detailed SIA
report is prepared.

After considering the SIA report and objections or suggestions received, the
government issues a final declaration of its intent to acquire the land. This
declaration specifies the extent of the land to be acquired.

5. Consent and Compensation

The consent of the affected families is sought for the acquisition.

The Collector determines the compensation amount, taking into account factors
such as the market value of the land, the value of assets attached to the land, and
other relevant factors.

6. Rehabilitation and Resettlement

Apart from monetary compensation, the Act has provision to provide for

 employment,
 allotment of alternative housing units,
 another land, and
 other entitlements, allowance and grants to make up for the loss of
occupation or opportunity owing to displacement,
 infrastructure facilities at the resettled place.

Additionally, in case of acquisition of land that exceeds 100 acres a


Rehabilitation and Resettlement Committee is constituted to monitor and
implement the Rehabilitation and Resettlement scheme.
7. Award and Possession

Once the compensation is determined, the Collector issues an award specifying


the details of compensation and rehabilitation and resettlement entitlements.

The govt. takes physical possession of land after paying the compensation. The
title and possession are transferred to the govt. for the intended public purpose.

8. Grievance Redressal

A grievance redressal mechanism is established to address any disputes or


grievances related to the land acquisition process.

9. Review and Appeals

The affected parties have the right to seek a review of the award if they are
dissatisfied.

Appeals can be made to the Land Acquisition, Rehabilitation, and Resettlement


Authority (LARRA) against the decision of the Collector.

10. Utilization of Land

Once possession is taken, the land is utilized for the intended public purpose,
such as infrastructure development or other government projects.
REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

The Real Estate (Regulation and Development) Act is an act passed by the
Parliament in 2016 that came into effect from 1st May, 2017.

The Act extends to whole of India. Provisions of the RERA Act apply to
residential apartments, buildings and plotswhether residential or commercial.

It seeks to protect home-buyersas well aspromote investments in the real estate


sector by bringing efficiency and transparency in the sale/purchase of real
estate.

The Act establishes Real Estate Regulatory Authority (RERA) in each state for
regulation of the real estate sector and also acts as an adjudicating body for
speedy dispute resolution.

Need for the Act

 To control and regulate the real estate sectors by shutting out


malpractices.
 To keep consumers out of perils such as delayed delivery, transfer of title
of the property, the quality of amenities provided and necessary changes
to be made before purchase etc.
 To appoint authorities to manage the real estate sector and to establish an
Appellate Tribunal for each State.
 To enable home buyers to file complaints in case of any wrong committed
by the builders or developers.
 To contribute a good percentage to India’s GDP.
 To tighten the security on the use of investments done by the home
buyers or investors.
 To have a supreme authorisation on the registration for the projects
required to be registered.
Salient features of the Act

 To regulate and promote the real estate sector by establishing the Real
Estate Regulatory Authority.
 To carry out the sale of plots, buildings or apartments, or sale of real
estate projectsin an efficient and transparent manner.
 To protect the interests of the consumers and buyers and ensure the
prevention of malpractices against them.
 To establish a speedy dispute redressal systems and also establish
Appellate Tribunals to hearand adjudge appeals from the decisions of the
RERA.
 To register all the projects that are required to be registered without which
the promoters cannot promote or sell.
 To cast duties on the promoters to upload details of the project on the
website including layout and site plans.
 Where the promoter causes the buyer any loss as a result of other people
claiming property (defective title of property) that has been built or is
being built, the promoter shall be liable to pay compensation to the buyer.
 To ensure that the money collected from project buyers must be kept in a
separate bank account and utilised solely for the construction of the
project.
 The Act provides the right to legal representation on behalf of the client
by a CA, CS or CMA or legal practitioners
 It imposes a stringent penalty on promoters, and real estate agents and
also prescribes imprisonment.

Key Provisions of the Act


Establishment of state level regulatory authorities- Real Estate Regulatory
Authority (RERA): The Act provides for State governments to establish more
than one regulatory authority with the following mandate:

 Register and maintain a database of real estate projects and publish it on


its website for public inspection,
 Protection of interest of promoters, buyers and real estate agents,
 Establishing sustainable and affordable housing,
 Provide advice to the government and ensure compliance with the Act
and its regulations.

Real Estate Appellate Tribunal- Decisions of RERA can be appealed in these


tribunals.

Mandatory Registration: All projects with plot size of minimum 500


sq.mtoreight apartments need to be registered with Regulatory Authorities.

Deposits: Depositing 70% of the funds collected from buyers in a separate


Escrow bank account for construction of that project only.

Liability: Developer’s liability to repair structural defects for five years.

Changes: If the builder would like to change the layout or plans after the sale,
he will need the approval of 2/3rd of the buyers in that project, to make such
changes.

Penal interest in case of default: Both promoter and buyer are liable to pay an
equal rate of interest in case of any default from either side.

Cap on Advance Payments: A promoter cannot accept more than 10% of the
cost of the plot, apartment or buildingas an advance paymentoran application
fee from a person without first entering into an agreement for sale.

Carpet Area: It defines the carpet areaasnet usable floor area of flat. Buyers
will be charged for the carpet area and not super built-up area.
Punishment: Imprisonment of up to 3 years for developers and up to 1 year in
case of agents and buyers for violation of orders of Appellate Tribunals and
Regulatory Authorities.

Registration of real estate agents: The Act also covers the agents who have to
mandatorily register, without which a real estate agent or broker cannot
facilitate the sale or purchase of any building, plot, or apartment as part of a
registered real estate project sold by the promoter in any of the planning areas.

Projects exempt from the ambit of the Act

 the area of land does not exceed 500 sq. metre.


 the number of apartments does not exceed eight.
 In the case of renovation or repair or re-development.

Application for registration of real estate projects (Section 4)

Every promoter must submit an application to the Authority for registration of


the real estate project in the form, manner, and time stipulated by the Authority
along with the fee specified by the Authority.

Step 1: An application has to be filed along with the fee and other documents in
the prescribed form for registration with RERA by the applicants.

Step 2: The approval or rejection of the application for registration shall be


done within thirty days from the date of receiving the application by the
Authority.

Step 3: The promoter of the project shall be provided with a registration


number, user ID for login and password for the applicant on
successfulregistration.

Revocation of registration (Section 7)


'
The Authority may revoke the registration granted after being satisfied that –
 the promoter fails to do anything required under this Act
 the promoter violates any of the terms or conditions of the competent
authority’s approval,
 the promoter is involved in any unfair practices or irregularities.

Central Advisory Council

The Central Govt. may establish a Council to be called as the Central Advisory
Council by notification, with effect from the date specified in the notification.

It also consist of representatives from the Ministry of Finance, Ministry of


Urban Development, Ministry of Consumer Affairs,MCA, Ministry of Law and
Justice, Niti Aayog,5 representatives from State Govts.as well as5
representatives from RERA’s to be selected by rotation.

It's functions is to advise and recommend the Central Govt:

 on all matters relating to the implementation of this Act.


 on major questions of policy;
 towards protection of consumer interest;
 to foster the growth and development of the real estate sector;
 on any other matter as may be assigned to it by the Central Government.

Appeals

 Parties aggrieved by the order of RERA can appeal before the Real Estate
Appellate Tribunal and it has to adjudicate such cases within sixty days.
 Civil Courts are barred from exercising jurisdiction on such matters.
 If any of the parties is not satisfied with the Real Estate Appellate
Tribunal’s order, they can file an appeal against the order of the Real
Estate Appellate Tribunal order to the High Court within sixty days.

Rights and duties of allottees –


 Right to obtain information about the project
 Right to know the stage-wise time schedule of completion of the project
 Right to claim possession of property
 Right to refund and compensation if promoter fails to give the possession.
 Duty to make payment as agreed.
 Duty to participate towards the formation of an association or society of
the allottees
 Duty to pay interest in case of late payment
 Duty to take physical possession of property within a period of two
months of the occupancy certificate issued for the said property.

Advantages of the Act

1. Timely delivery of flats - If the builder is not able to deliver the flats on
time, he/she will have to refund the purchaser with interest.
2. Furnishing of accurate project details – If a builder is found guilty of
this, he will be penalized 10% of the project’s cost or jail of up to 3 years.
3. All clearances are mandatory before beginning a project - This Act
ensures that builders get all the clearances before selling flats.
4. Each project should have a separate bank account - Each transaction
will have to be recorded, and diversion to another project will not be
entertained.
5. After sales service - If the buyer finds any structural deficiency in the
building, the buyer can contact the builder for after sales service - within
5 years of purchase to rectify such defects without further charges.

Limitations of the Act

1. Past real estate projects not included - Only new projects are covered
by the Act. And projects that are ongoing, completed or stuck due to
clearance or financial issues, don’t come under this.
2. No compulsory regulation for projects less than 500 square meter.
3. New project launches expected to be delayed - Because a project will
not be allowed to launch without the requisite clearances from the
government, projects will automatically get delayed.
4. Delay from government agencies - There can be delays caused by the
government, which sometimes takes a lot of time to clear a project.
5. There is a cash flow problemdue to the seventy per cent deposit of
payment in the escrow account.

DELHI APARTMENT OWNERSHIP ACT, 1986

The Delhi Apartment Ownership Act, 1986 was enacted by the Indian
Parliament keeping in view the fact that the ownership and control of the
material resources of the community must be distributed in such a way that it
serves a common good.

Therefore, the objective of the act was to confer an inheritable and transferable
right to the apartment owners in an apartmentincluding a proportionate and
undivided share of the landand other common areas.

The act also considered the rightful demand of the apartment owners and gave
them the autonomy to manage the common areas and facilities by
themselvesinstead of relying on the mercy of the Builders.

The Act clarifies the rights and obligations of apartment owners, such as in
relation to inheritance, restrictions on transfers like mortgage and sale, and the
right to use common areas and facilities.

Understanding some terms used in the Act

Administrator: An Administrator is an authority of the Union Territory of


Delhi, appointed by the President under Article 239 of the constitution.

Bye-Laws: Bye-laws are laws made under this Act.


Common Areas and Facilities: Common Areas and Facilities constitutes the
land on which the multi-storied apartment or a building is located, the gardens,
basements, parking areas, shopping centre, schoolsand all the structural
elements likecolumns,girders, beams, supports, main walls, roofs,
halls,corridors,lobbies, stairs, fire-escapesandentrancesandexits of the building.

Common Expenses: Common expenses are sums of money, lawfully assessed


against the apartment owners, for meeting the expenses of administration,
repair, and maintenance or for modifying common areas and facilities.

Applicability of the Act

The Act is applicable to the whole of the union territory of Delhi.

The Act is applicable to every apartment in a multi-storeyed buildingwhether


constructed on freehold land or leasehold land if the lease is for a period of
more than thirty (30) years.

A “multi-storeyed building” means a building constructed on any land which


contains 4 or more apartments. In case there are 2 or more Buildings in any area
designated as a block, pocket etc., each building in that block must contain 2 or
more apartments, with a total of 4 or more apartments in the whole block.

Moreover, for any building which contains only 2 or 3 apartments, the


provisions of the act could also be applicable to itif the owner of such building
indicates his intention to make the provisions of this Act applicable to such
building.

So, the declaration given by the owner of the building must be duly executed
and registered under the provisions of Registration Act and after such a
declaration is made by him the owner has to also execute and register a Deed of
Apartment.
Transfer of Interest in Common Areas and Facilities:

All common areas and facilities will be available for use by all apartment
owners.The common areas and facilities will not be divided or partitioned. Each
apartment owner will use it for the purpose that it’s intended for, without
hindering or encroaching upon another apartment owner’s right to use the space.

Basically, Every apartment owner who becomes entitled to the exclusive


ownership and possession of an apartment shall also be entitled to a percentage
of undivided interest in the common areas and facilities.

Such interest in the common areas and facilities provided to the apartment
owner shall be specified in the Deed of Apartment.

Deed of Apartment:

Every Promoter within three months from the date of allotment, sale or other
transfer of any apartment shall execute a Deed of Apartment containing the
details of the allottee, land, apartment, building and the common areas and
facilities.

The same has to be filed in the office of the competent authority and deliver a
certified copy of the Deed of Apartment as registered under the registration Act
to the concerned allottee.

Formation of Association of Apartment Owners

The Act mandates that there shall be anAssociation of Apartment Ownersfor the
administration of the affairs in relation to the apartments and for the
management of common areas and facilities. Moreover, there shall be only a
single Association of Apartment Owners in any block or pocket containing more
than one multi-storeyed building.

The Act is silent on the aspect of when such an Association of Apartment


Owners can be formed. As per RERA Act, 2016 the Act has provided that in
absence of any other laws, the association of allottees, by whatever name called,
shall be formed within 3 months of the majority of allottees having booked the
flat.

Bye-Laws to be framed as per administrator’s Model Laws

The bye-laws framed by any association of apartment owners should be exactly


in accordance with the model bye-laws framed by the Administrator. In case the
association wishes to make any changes, the members of the association require
a prior approval from the Administrator.

The model bye-laws contain the manner in which association of apartment


owners is to be formed, the election of the Board of association of apartment
owners, the powers and duties of the Board, the method of calling meetings of
the Association of Apartment Owners, Maintenance, repair and replacement of
the common areas and facilities and payment thereof, etc.

Apartments to be heritable and transferable

According to the Act, every apartment, including its common areas and
facilities, will be a transferable and heritable immovable property.

The apartment owner can transfer his apartment and his share of the non-
partitioned common areas and facilities by way of lease, mortgage, sale,
exchange, or gift.

Common Profits and Expenses to be shared in a certain proportion

The profits will be distributed, and the expenses will be chargedfrom all the
apartment owners in proportion of the percentage of the undivided interest they
hold in the common areas and facilities.

Sometimes, the apartment owner isn’t an occupant of his or her apartment. In


this case, the person currently occupying that apartment needs to pay his or her
share of the common expenses.
Certain Works Are Prohibited

 No apartment owner can make such changes to the structure of the


apartment as would lead to the reduction in the property value and affect
the safety and soundness of the property.
 Excavating a cellar or additional basement, or adding any material
structure is the kind of works that are prohibited.

To do so, one would have to acquire consent from all the apartment owners of
the association.

What purpose the act serves?

An apartment owner can easily transfer, purchase, or gift

 multi-storied residential and commercial apartments,


 co-operative group housing society apartments, and
 private apartments.

Earlier, the apartments in Delhi were monopolized by such parties like the
Registrar of the Group Housing Society, Delhi Development Authority (DDA),
and the builders. With the implementation of this Act, this monopoly comes to
an end. All of the rights are now given to the associations of apartment owners.
DELHI RENT CONTROL ACT 1958

The main purpose of introducing the Delhi Rent Control Act, 1958 is to protect
the rights of tenants, give them security and restricts the landlords in their
ability to evict their tenants.The Delhi Rent Control Act1958 came into force on
9th February 1959.

The Act extends to the areas included within the limits of the New Delhi
Municipal Committee and the Delhi Cantonment Board and to such urban areas
within the limits of the Municipal Corporation of Delhi (MCD).

The courts are under compulsion to harmoniously read the provisions of the
Actso as to balance the rights of the landlord and the obligations of the tenant
and landlord toward each other.

Delhi Rent Control Act 1958 is meant to fulfill two main purposes:

 to protect the tenant from having to pay more than a standard rent.
 to protect the tenant from arbitrary eviction.

If the rent of a property is less than Rs. 3,500/-then the provisions of the Delhi
Rent Control Act, 1958 will apply.However, if the rent of a property is more
than Rs. 3,500/- then, the provisions of the Transfer of Property Act, 1882 will
apply.If the amount of rent charged is Rs. 3,500/- exact, then the provisions of
the Delhi Rent Control Act, 1958 will apply.

The provisions of this act shall apply to all the hotels and lodges covering in the
jurisdiction and the controller shall have all the rights to fix the fair rate to be
charged for any boarding/lodging.

The salient features of the 1958 Act are –

 to provide for control on rental housing market;


 fixation of fair or standard rent;
 protection of tenants against indiscriminate eviction;
 obligations of landlords regarding maintenance;
 right of landlords for recovery of possession in specific circumstances.

Authority to adjudicate the disputes

In case of a dispute between a landlord and a tenant under the said Act,
theauthority to legally intervene in the dispute lies with the concerned Rent
Controller of the area where the property in question is situated.

An appeal against the decision of the Rent Controller lies before the Rent
Control Tribunal under Section 38 of the Act, and later on with the concerned
High Court of the State.

Landlord

Under section 2(e), a person who is entitled to receive the rent (trustee,
guardian)or receiving the rent on account of premises that has been lent to the
tenant.

Tenant

Under Section 2(1) of the Act,"tenant" means any person by whom or on whose
behalf the rent of any premise would be payable and includes-

1. a sub-tenant
2. any person continuing in possession after the termination of his tenancy
3. in the event of the death of the person continuing in possession after the
termination of his tenancy,thensuch of the aforesaid person's-
 spouse
 son or daughter
 parents,
 daughter-in-law, being the widow of his pre-deceased son

as had been ordinarily living in the premises with such person as amembers of
his family up to the date of his death.
Landlord’s Perspective

 The Delhi Rent Control Act 1958 is largely considered tenant-friendly


and does nothelp the cause of landlords.
 The low return rates have almost made the lease a welfare activity for the
landlordas well as the unwillingness to repair and maintain the property,
often causes the building to collapse.
 Prospective landlords are deterred from entering the rental market,
preventing the supply of new stock.
 Restricting revision of rent–
Under Section 6A, the standard rent (or where no standard rent is fixed
respect of any premises, the rent agreed upon between the landlord and
the tenant), may be increased by 10 % every three years.
The Act has no mechanism to bring the historical rent to the present
market rate and gives a tenant the luxury to pay less than Rs 3,500 per
month.
In case the landlord has incurred any expenditure for any improvement,
addition or structural alteration in the premises and the cost of the
improvement, addition or alteration has not been taken into account in
determining the rent of the premises, he may lawfully increase the
standard rent per year.
 Difficulty in evicting tenant - The conditions under which a landlord can
evict a tenant are stringent and strictly monitored, and rarely the landlord
can remove from the property.
 High cost of maintaining property–
Under the regulatory regime, rents continue to remain low, while
operating costs continue to rise. The situation is even more serious in the
case of older tenants who have frozen rents at a historically low level.
In the case of these old features, the need for maintenance is high. Old
housing stock suffers premature decay and decline because the landlord
finds it difficult to maintain it.
 The Delhi Rent Control Act 1958 was meant to protect tenants’ interests
and although it has served them well, the law became a tool to harass
landlords over the next decades.

Tenants Perspective

 Landlords exploited students: Outstation students studying at colleges


in Delhi pleads that the law allows landlords to exploit them. These
students, miles away from home, are the most defenseless tenants and do
not possess any choice but to heed to the demands of their landlords.
 Protection against Eviction –
A tenant cannot be arbitrarily asked by a landlord to vacate his premises.
Only non-payment of rent or discretionary subletting are the two
technical defaults committed by a tenant that allowed a landlord to take
back his property.
Family of the tenant should also be entitled to same protection against
eviction as affordable to tenant under the Delhi Rent Control Act.

Premises where the Act shall not be Applied [Section 3]

 to any premises belonging to the Government


 to any tenancy or other like relationship created by a grant from the
Government in respect of the premises taken on lease by the Government.
 to any premises (whether residential or not) whose monthly rent exceeds
Rs. 3500.

Lawful increase of standard rent in certain cases [Section 7]

Where a landlord has,


 before the commencement of this Act with or without the approval of the
tenant or
 after the commencement of this Act with the written approval of the
tenant or of the Controller

incurred expenditure for any improvement, addition or structural alteration in


the premises, and the cost of that improvement, addition or alteration has not
been taken into account in determining the rent of the premises, the landlord
may lawfully increase the standard rent per year by an amount not exceeding 10
% of such cost.

Where a landlord pays any charge for electricity or water consumed in the
premises or any other charge levied by a local authoritywhich is ordinarily
payable by the tenant - he may recover from the tenant the amount so paid by
him. But the landlord shall not recover from the tenant by means of an increase
in rent or the amount of any tax imposed in respect of the premises occupied by
the tenant.

Notice of increase of rent [Section 8]

 Where a landlord wishes to increase the rent of any premises, he shall


give the tenant notice of his intention to make the increase and such
increase is lawful under this Act.
 And it shall be recoverable only in respect of the period of the tenancy
after the expiry of thirty days from the date on which the notice is given.
 Every notice shall be in writing signed by or on behalf of the landlord.

Sub-Tenancy [section 17]

The tenant has to give notice to the landlord of the creation of the sub-tenancy
within one month of the date of such sub-letting and notify the termination of
such sub-tenancy within one month of such termination.
Deposit of Rent

 Every tenant shall pay rent by the time fixed by the contract or in the
absence of such contract, by the 15th day of the month next following the
month for which it is payable.
 The landlord is liable to provide the written receipt for the amount paid
by the tenant as rent and in case the landlord refuses to give such receipt
to the tenant, then the tenant has the right to approach the controller who
can direct the landlordto pay to the tenant by way of damages, such sum
not exceed double the amount of rent paid by the tenant and the costs of
the application and shall also grant a certificate to the tenant in respect of
the rent paid.
 The tenant has to deposit the rent within 21 days from the due date
mentioned in the agreement or from 15 days limit fixed thereon.

1996 ACT

The basic objective of the Rent Control Act is to protect the tenant
from exorbitant rent, arbitrary increase in rent and to ensure the
security of the tenant. In India, states enacted their own Rent Control
Act by 1972. The rent control act is applicable to most of the
residential and non-residential premises in all urban areas of the
states. In 1992, the Central Government proposed a Rent Control
Legislation to all the states. The model act was a proposal for a
modification to the earlier laws and which prescribed a level of rent
beyond rent control

cannot be applied. The New Delhi Rent Control Act in 1997 was
passed but later the model act failed. Now each and every state in
India provides fixation of standard rent. The mainprovisions of the
Rent Control Act are as follows:
1. Control of Vacant Building i.e. letting and leasing to assist the
tenant.

2. Fixation of fair and standardised rent.

3. Protection from indiscriminate eviction to tenants.

4. Obligations and duties of landlords i.e. maintenance of the rented


property.

5. Rights of Landlords on default payment or misuse of property or


recovery of the property for specific reasons.

GROUNDS OF EVICTION [Section 14]

The landlord cannot evict any tenant without any valid reason. The
circumstances under which a tenant can be evicted are mentioned below, but in
those cases also the landlord has to make an application to the Controller for the
recovery of the possession:

 The tenant fails to pay rent even after two months of the notice to pay the
arrears was delivered to him.
 Without obtaining the consent of the landlord in writing, the tenant has
sub-let, assigned or parted with the possession of the premises.
 The tenant has used the premises for purpose other than that for which
they were let, without obtaining the consent of the landlord.
 The premise is a residential property and neither the tenant nor their
dependents are residing in the premises for 6 months immediately before
the date of the filing of the application for the recovery of possession.
 The landlord may require the property for their personal use, such as
moving in themselves or accommodating a family member because the
landlord has no other reasonably suitable residential accommodation.
 The premises have become unsafe or unfit for human habitation and are
required by the landlord for carrying out repairs which cannot be carried
out without the premises being vacated.
 The premises are required by the landlord for the purpose of building or
re-buildingorfor any substantial additions or alterations and that such
building, re-building, addition or alteration cannot be carried out without
the premises being vacated.
 The tenant has (whether before or after the commencement of this Act)
acquired vacant possession of, or has been allotted - a residence.
 The tenant has after the commencement of the Delhi Rent Control
(Amendment) Act 1988, built a residence and 10 years have elapsed
thereafter.
 The premises were let to the tenant for use as a residence by reason of his
being in the service or employment of the landlord, and that the tenant
has ceased to be in such service or employment.
 The tenant hascaused or permitted to be caused substantial damage to the
premises.
 The tenant has used the premises in a manner contrary to the condition
imposed on the landlord by the Government or DDA or MCD, while
giving him a lease of the land on which thepremises are situated.
 The landlord requires the premises in order to carry out any building
work at the instance of the Government or DDA or MCD in pursuance of
any improvement scheme or development scheme and that such building
work cannot be carried out without the premises being vacated.
Case: V. DhanapalChettiar v. YesodaiAmmal, 1979: SC held that, in order to get
a decree for eviction against the tenant, the notice is notnecessary. The tenant
continues to be a tenant even after the serving of the evictionnotice. The
landlord is under a duty to make out a case from the grounds mentioned under
therent control legislation and it shall be sufficient to have the eviction
thereafter.

Case: PriyaBalaGhosh v. B.L. Singhania, 1992: It was held that rent can be
tendered by money order, and in case if the money order is sent within time but
it reaches late to the landlord, then, it would be deemed as a valid tender.

Process of evicting a tenant in India

Step 1 – Send a notice to the tenant to vacate

A formal eviction notice must be drafted, specifying the grounds for eviction,
along with the date and time by which the tenant must vacate the property. This
notice is then sent to the tenant through a court of competent jurisdiction. The
landlord must allow the tenant a reasonable amount of time to quit the rented
property. After getting a formal notice from the court, the majority of tenants
vacated the rented premises.

Step 2 – File a suit for eviction

If the tenant refuses to vacate and challenges the eviction after receiving the
court's notice, the landlord may choose to engage a rental property attorney to
file an eviction lawsuit. The lawsuit is filed in the civil court that has
jurisdiction over the rented property.

Step 3 – Final notice for eviction

During the eviction lawsuit, both parties present their arguments and evidence.
Based on the proceedings and the facts presented, the court issues a final legal
notice of eviction to the tenant. Once this final eviction order is issued by the
court, the tenant is legally obligated to vacate the rental property and cannot
disregard the notice.

DISPUTE SETTLEMENT MECHANISMS

Section 35 -Appointment of Controllers and Additional Controllers.

The Central Government may, by notification in the Official Gazette, appoint as


many Controllers as it thinks fit, and define the local limits within which, or the
hotels and lodging houses in respect of which, each Controller shall exercise the
powers &duties imposed on them.

The Central Government may also, by notification in the Official Gazette,


appoint as many additional Controllers as it thinks fit.

An additional Controller shall perform such functions of the Controller as


maybe assigned to him in writing by the Controller subject to the control of the
Central Government.

A person shall not be qualified for appointment as a Controller or an additional


Controller, unless he

 has for at least 5 years held a judicial office in India or


 has for at least 7 years been practising as an advocate or a pleader in
India.

Section 36 -Powers of Controller.

The Controller may:

 transfer any proceeding pending before him for disposal to any additional
Controller, or
 withdraw any proceeding pending before any additional Controller and
dispose it of himselfortransfer the proceeding for disposal to any other
additional Controller.
The Controller shall have the same powers as are vested in a civil court under
the Code of Civil Procedure, 1908, when trying a suit:

 summoning and enforcing the attendance of any person and examining


him on oath
 requiring the discovery and production of documents
 issuing commissions for the examination of witnesses
 any other matter which may be prescribed; and

Any proceeding before the Controller shall be deemed to be a judicial


proceeding under the Indian Penal Code and the Controller shall be deemed to
be a civil court under the Code of Criminal Procedure, 1898.

For the purposes of any inquiry or discharging any duty, the Controller may,—

 after giving not less than 24 hours’ notice in writing -enter and inspect or
authorise any officer subordinate to himto enter and inspect any premises
at any time between sunrise and sunset.
 by written order, require any person to produce for his inspection all such
accounts, books orother documents relevant to the inquiry.

The Controller may appoint one or more persons having special knowledge of
the matter under consideration as an assessor to advise him in the proceeding.

Section 37 -Procedure to be followed by Controller.

No order which prejudicially affects any person shall be made by the Controller
without giving him a reasonable opportunity of showing cause against the order
proposed to be made and until his objections (if any) and any evidence he may
produce in support of the same have been considered by the Controller.

The Controller, while holding an inquiry in aproceeding shall follow the


practice and procedure of a Court of SmallCauses, including the recording of
evidence.
In all proceedings before him, the Controller shall consider the question of
costsandawardsuchcosts to or against any party as the Controller considers
reasonable.

Section 38 - Appeal to the Tribunal.

An appeal shall lie from every order of the Controller, only on questions of
lawto the Rent Control Tribunal consisting of only one person to be appointed
by the Central Government by notification in the Official Gazette.

An appeal shall be preferred within 30 days from the date of the order made by
the Controller. The Tribunal may entertain the appeal after the expiry of the
said period of 30 days, if it is satisfied that the appellant was prevented by
sufficient cause from filing the appeal in time.

The Tribunal shall have all the power vested in a court under the Code of Civil
Procedure, 1908 when hearing an appeal.

The Tribunal may by order transfer any proceeding pending before any
Controller or additional Controller to another Controller or additional
Controller. And the Controller or additional Controller to whom the proceeding
is so transferred may, subject to the directions in the order of transfer, dispose of
the proceeding.

A person shall not be qualified for appointment to the Tribunal, unless

 he is, or has been a district judge or


 has for at least 10 years held a judicial office in India.

Section 38A - Additional Rent Control Tribunals.

For the expeditious disposal of appeals and applications under section 38, the
Central Government may, by notification in the Official Gazette, constitute as
many Additional Rent Control Tribunals as it deems fit and appoint to each such
Additional Rent Control Tribunal, person qualified for appointment to the
Tribunal.

Section 38B - Power of High Court to transfer appeals, etc.

The High Court may also on an application made to it or otherwise, by order,


transfer

 any appeal or proceeding pending before the Tribunal to any Additional


Tribunal; or
 any appeal or proceeding pending before any Additional Tribunal to the
Tribunal or in any other Additional Tribunal.

Section 41 - Controller to exercise powers of a magistrate for recovery of


fine.

Any fine imposed by a Controller shall be paid by the person fined within such
time as may be allowed by the Controller.

The Controller may, for good and sufficient reason, extend the time, andin
default of such payment, the amount shall be recoverable as a fine under the
provisions of the Code of Criminal Procedure, 1898.

The Controller shall be deemed to be a magistrate under the said Code for the
purposes of such recovery.

Section 42 - Controller to exercise powers of civil court for execution of


other orders

An order made by the Controller or an order passed on appeal shall be


executable by the Controller as a decree of a civil court and for this purpose, the
Controller shall have all the powers of a civil court.

Section 43 -Finality of order.


Every order made by the Controller or an order passed in appeal shall be final
and shall not be called in question in any original suit, application or execution
proceeding.

Section 50 - Jurisdiction of civil courts barred in respect of certain matters.

No civil court shall entertain any suit or proceeding in so far as it relates

 to the fixation of standard rent in relation to any premises to which this


Act applies or
 to eviction of any tenant therefrom or
 to any other matter which the Controller is empowered by or under this
Act to decide.

No injunction in respect of any action takenorto be taken by the Controller


under this Actshall be granted by any civil court or other authority.

But a civil court is not prevented from entertaining any suit or proceeding for
the decision of

 any question of title to any premises to which this Act applies or


 any question as to the person who is entitled to receive the rent of such
premises.

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