Govt readies to put landlords in the dock

Housing department officials have been instructed to submit data showing that landlords have made enough money on their properties. They have also been asked to examine voters’ lists (for the last two elections) to show there have been transfers of tenants in rented premises, and a series of meetings called by Housing Minister Sureshdada Jain are being attended even by officials of BMC’s Assessment & Collection department (A&C) and Mumbai Repair andReconstruction Board members.

The government plans to scan voters’ lists for change in names and addresses, which will help it ascertain transfers of tenancies. It is also trying to collect data of premia paid and change of ownership of landlords’ properties. Tenant groups who are also digging up old details have found a large number of buildings have changed owners over the years, though rent receipt sometimes continue on the old owner’s name.

Landlords claim their revenue from rented premises is very low — which impedes repair and maintenance work — as houses were let out many decades ago on standard rents which haven’t increased since. They also argue tenants are the ones who have illegally sublet the premises.

But every transfer means an exchange of several thousands, even lakhs or crores of rupees as pugree, said tenant activists. Solicitor Keerit Shah, who represents the Juhu-Vile Parle Development (JVPD) scheme residents said, “Any tenancy after 1960 must be treated as an ownership case aspagree transactions were the order of the day. After 1960, nothing like pure tenancy exists in Mumbai. The bogey of landlords that they’re not getting adequate returns on properties is ridiculous.” In JVPD itself, 17 transfers of tenancies were detected till date. JVPD residents by virtue of law cannot be owners as land was leased by government to landlords. Most residents have paid black money in crores (equivalent to property rates) to landlords, and any transfer means another hefty transaction.

Narayan Rane, it is learnt, upholds former CM Manohar Joshi’s stand of no increase’ in rents. Landlords had filed a fresh plea in SC for striking down the interim Rent Act which had effected a five per cent increase in rent for 1998-99. The SC had subsequently asked all registered tenant associations to intervene. Now tenant groups too are independently gearing up for the final chance to prove that they, rather than landlords, have been victims of the Rent Act.

Meanwhile, officials of BMC’s A&C department andthose of the Repair Board are sifting their records to submit lists of all tenanted cessed buildings and reconstructed buildings and their occupants. Housing department sources informed the government is also trying to enumerate the change of users in tenanted premises from residential to commercial, because commercial premises command a larger amount in premium. The government, once bitten, twice shy – it had lost the last legal battle with landlords – is now trying not to take any chances.