Land & Real Estate Laws

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The key takeaways are that land is an important resource and its ownership and usage has changed over time in India, especially during British rule when intermediaries like landlords emerged. Different types of tenancy arrangements also came into existence for farmers to use land.

The different types of tenants mentioned are cash tenants, share-cash tenants, crop-share tenants, croppers and other unspecified tenants.

The different tenancy systems discussed are Ryotwari, Mahalwari and Jamindari/Jagirdari systems.

Chanderprabhu Jain College of Higher Studies & School of Law

Plot No. OCF, Sector A-8, Narela, New Delhi – 110040


(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)

Semester:
Semester:NINTH
NINTHSemester
Semester

Name
Nameof
ofthe
theSubject:
Subject:

LAND
LAND AND
AND REAL
REAL ESTATE
ESTATE LAWS
LAWS

UNIT 1
LAND

▫ Land is considered as an important element of life and is highly valued in


most of the world. Land is useful to man in many ways as a source of food,
for place to live, for wood, for place to work etc.,

▫ In India , Before colonial rule the land used to be in the hands of the
community as a whole . However during the British Raj this has changed.

▫ Lord Carnwallies has introduced Permanent Land Settlement for Bengal,


Bihar and Orissa in 1793. According to this the tax farmers appointed by the
British rulers will be converted as various Land Lords. Under this rule they
have to pay fixed commission to East India Company. Thus these
intermediary are formed, called as Jagirdars / Jamindar.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
• Emergence of Tenants
▫ Following the Land Settlement Act, 1793, The farmers purchase lands from
the Land Lords and hire it for their agricultural use. These people who hired
the land are called Tenants.
▫ Variations in Tenancy
▫ Cash Tenants : They pay a fixed tax for the use and occupy of the land
▫ Share – cash Tenants: They pay part of their rent in cash and other part as
share of the crop
▫ Crop - share Tenants : They pay a share of crops only
▫ Croppers : They pay crop of the share. But they are not independent they
work under the landlord.
▫ Other unspecified tenants:
• Land Lord – Tenant Relationships
▫ Land lord – Tenant
▫ Landlord – Agricultural Labour

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Tenancy Systems :

▫ Ryotwari : This existed in Madras since 1772. And extended to Bombay


Presidency. Under this system., every registered holder of the land is
considered as proprietor. He paid revenue directly to the government and is
having liberty to sell / lease / gift the property to any one.
▫ Mahalwari: The land ownership is held as joint ownership with the village
body. The land can be cultivated by tenants who can pay cash / kind /
share.
▫ Jamindari: Under this system the whole village was under one landlord.
The persons interested can work in the jamindars land as tenant / labourer
based on the agreement with the jamindar. The jamindari system was
known to be more exploitive, as the jaminder used to fix / hike the prices of
land when ever he wished to do so.
▫ Jagirdari: Almost as similar as Jamindari system. The jagirdar is powered
to control the unproductive masses of village by engaging them in agrarian
activities

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
LAND REFORMS

▫ After India Independence, the government has decided to abolish the


systems of Jamindaris and Jagirdari, in order to remove intermediaries
between state and peasant. This was the first legislation taken by almost all
the states called as Abolition of Jamindari / Jagirdari systems Act. In
1950s.
▫ The main objectives of the Land Reforms are
▫ To make redistribution of Land to make a socialistic pattern of society.
Such an effort will reduce the inequalities in ownership of land.
▫ To ensure land ceiling and take away the surplus land to be distributed
among the small and marginal farmers.
▫ To legitimize tenancy with the ceiling limit
▫ To register all the tenancy with the village panchayats
▫ To establish relation between tenancy and ceiling

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
ACCESS TO LAND REFORMS

▫ Gandhian Approach: The Sarvodaya movement of Mahatma Gandhi Talks


more about the universal upliftment. Inspired by Gandhism, Vinoba Bhave
has started the Gram dam movement. This movement approached the
landlords to donate to surplus to the landless / marginalized farmers.

▫ 2. The radical nationalist approach: Has been formally adopted by most of


the state governments, however this approach couldn’t contribute much.

▫ 3. The Marxist approach has been taken into account and is supported in
the wake of peasant movements
 

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
OUTCOMES OF LAND REFORMS

1. Abolition of Jamindars and Jagirdars 
▫ The powerful Jamindars and Jagirdars have become extinct
▫ The abolition of intermediaries have ceased exploitation
▫ Transfer of land to peasants from intermediaries have reduced inequalities
▫ The new proprietorship has given scope for innovation in Land Reforms
▫ The ex-jagirdars and ex-Jamindars have engaged themselves actively in
other work thus contributing for National Growth
▫ The abolishment of these systems have multiplied to the new land owners
thus adding revenue to the state governments.
 

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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• 2. Land Ceiling 
▫ Land is a source of Income: In rural India land provides employment
opportunities. There fore its important for the marginal farmers, agricultural
laborers, and small farmers.
▫ Land Ceiling should be imposed on all kinds of lands: The land of different
types : 1. Fallow 2. Uncultivable 3. irrigated and 4. Cultivable land. All the
mentioned are inclusive of ceiling Act.
▫ Ceiling on irrigated and two crops a year: The ceiling act varies from state
to state on ceiling on two crops a year land. However in most of the places
the ceiling is 18 Acres. Anything above has to be taken by the respective
state government.
▫ Ceiling on irrigated and one crop a year: A peasant is eligible to have 27
acres of one crop a year land. Any land above the mentioned is declared
surplus and taken over by the state government.
▫ Ceiling upto 54 acres: Peasants can have other different kinds of land
which are to be used for cultivation until 54 acres.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
3. Land possession and social power 
▫ It has been increasingly realized that the land is not only the source of
production but also for generating power in the community.
▫ More capable more land  

• Legitimization of tenancy 
▫ In the Indian system the land is often transferred from one generation to
another generation. However all this lack the documentation of possession
of land. In this given context, the government had made it mandatory to
register all tenancy arrangements

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
• Land as a private property
▫ Lands are now owned as a private property

• Failures of Land Reforms 
▫ State side with big farmers
▫ Big Farmers corner the lad of marginalized farmers
▫ Surplus Land is always fallow and uncultivable
▫ Benami Transactions
▫ Lack of Political Will
 

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)

Semester:
Semester:NINTH
NINTHSemester
Semester

Name
Nameof
ofthe
theSubject:
Subject:

LAND
LAND AND
AND REAL
REAL ESTATE
ESTATE LAWS
LAWS

UNIT 2
URBANIZATION

It is the growth of cities, brought about by a population shift from rural areas and
small communities to large ones, and the change from a largely agricultural
economy to an industrial one.
This results in the development of cities and towns on formerly agricultural or
natural lands.

HISTORY
Through most of history, the human population has lived a rural lifestyle, dependent
on agriculture and hunting for survival.
In 1800, only 3 percent of the world's population lived in urban areas.
By 1900, almost 14 percent were urbanites, although only 12 cities had 1 million or
more inhabitants.
In 1950, 30 percent of the world's population resided in urban centers. The number
of cities with over 1 million people had grown to 83.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
The world has experienced unprecedented urban growth in recent decades.
In May 2007 for the first time in history over 50% of the world's population lived in
urban areas.
There are 411 cities over 1 million.
More developed nations are about 76 percent urban, while 40 percent of residents
of less developed countries live in urban areas.
It is expected that 60 percent of the world population will be urban by 2030, and
that most urban growth will occur in less developed countries

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
CAUSES

A city grows through natural increase— the excess of births over deaths and the
in-migration of people from rural areas.
MDCS and LDCs differ in the way in which urbanization is occurring.

MDCs : During the 19th and early 20th centuries, urbanization resulted due to
industrialization.
New job opportunities in the cities encouraged the mass movement of
population away from the countryside.
At the same time, migrants provided cheap, plentiful labor for the emerging
factories.
High death rates in the cities slowed urban growth. Cities were unhealthy
places because of crowded living conditions, the prevalence of contagious
diseases, and the lack of sanitation. Until the mid-1800s, the number of
deaths exceeded births in many large European cities.
Migration accounted for as much as 90 percent of city growth during this
period

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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LCDs

Urbanization in LDCs
Urbanization in most less developed countries in the past 50 years contrasts
sharply with the experience of the more developed countries.
Death rates have fallen faster in urban areas because of greater access to
health services.
Because birth rates are relatively high in most less developed countries, the
rates of natural increase are also quite high in cities.
Migration also fuels urban growth in less developed countries as people
leave the countryside in search of better jobs

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
GLOBAL DIFFERENCES

New York and London are typical of large cities in more developed countries that
arose in the 1800s and early 1900s, reached their current size mid-century, and
have since experienced slow growth or decline.
Cities in some less developed countries, such as Mexico City, grew very rapidly
between 1950 and 1980, and are growing more slowly now.
Many Asian and African cities, such as Lagos and Bombay, are experiencing very
rapid growth now and are projected to continue at this pace.

Much of urban migration is driven by rural populations' desire for the advantages
that urban areas offer.
Urban advantages include greater opportunities to receive education, health
care, and services such as entertainment. The urban poor have less
opportunity for education than the urban nonpoor, but still they have more
chance than rural populations.

 
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
• MEGACITIES
As the population increases, more people will live in large cities. Many people
will live in the growing number of cities with over 10 million habitants known as
megacities. shows,
In 1950 just eight cities had populations of 5 million or more, two of them in less
developed countries.
There were 41 megacities in 2000.
By 2015, 59 megacities will exist, 48 in less developed countries.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
URBANIZATION AND ENVIRONMENT

The growth in world population has an important human-environmental


interaction: While the world's population is doubling, the world's urban population
is tripling.
Within the next few years, more than half the world's population will be living in
urban areas

Both the increase in and the redistribution of the earth's population are likely to
affect the natural systems of the earth and the interactions between the urban
environments and populations.

Urban populations interact with their environment. Urban people change their
environment through their consumption of food, energy, water, and land. And in
turn, the polluted urban environment affects the health and quality of life of the
urban population.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
People who live in urban areas have very different consumption patterns than
residents in rural areas.
For example, urban populations consume much more food, energy, and durable
goods than rural populations. In China during the 1970s, the urban populations
consumed more than twice as much pork as the rural populations who were
raising the pigs.
In India where many urban residents are vegetarians, greater prosperity is seen in
higher consumption of milk.

Energy consumption for electricity, transportation, cooking, and heating is much


higher in urban areas than in rural villages. For example, urban populations have
many more cars than rural populations per capita.
In China the per capita consumption of coal in towns and cities is over three times
the consumption in rural areas.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
EFFECTS ON WEATHER

Urban consumption of energy helps create heat islands that can change local
weather patterns and weather downwind from the heat islands.
The heat island phenomenon is created because cities radiate heat back into the
atmosphere at a rate 15 percent to 30 percent less than rural areas.
The combination of the increased energy consumption and difference in albedo
(radiation) means that cities are warmer than rural areas (0.6 to 1.3 C).16
And these heat islands become traps for atmospheric pollutants. Cloudiness and
fog occur with greater frequency.
Precipitation is 5 percent to 10 percent higher in cities; thunderstorms and
hailstorms are much more frequent, but snow days in cities are less common.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
EFFECTS ON HEALTH

Some urban environmental problems include inadequate water and sanitation,


lack of rubbish disposal, and industrial
The health implications of these environmental problems include respiratory
infections and other infectious and parasitic diseases.
Because urban land prices are so high costs for building cleaner public
transportation systems and for building more hospitals and clinics are higher in
cities.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)

Semester:
Semester: Ninth
Ninth semester
semester

Name
Name of
of the
the Subject:
Subject: Land
Land and
and Real
Real Estate
Estate Laws
Laws

Unit 3
Salient Features Of The Real Estate (Regulation And Development) 
Bill 2016

After a lot of opposition, deliberation and several amendments, the Rajya


Sabha has, on 10 March 2016, approved the Real Estate (Regulation
and Development) Bill, 2016 (Bill/Act) which substantially amends the
original Real Estate (Regulation and Development) Bill, 2013.
The Bill largely seeks to protect the interest of the allottees/purchasers by
promoting transparency, accountability and efficiency in the construction
and execution of real estate projects by promoters. It also holds the
promoters accountable for not registering their projects with the Real
Estate Regulatory Authority (Regulatory Authority) or for providing
insufficient information regarding their project. In addition to the promoter
and allottees, the Bill also brings real estate brokers who facilitate the
sale and purchase of units in a project within its ambit.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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Salient Features
The salient features of the Bill are the following:
Real Estate Regulatory Authority
Under the Bill, instead of a regular forum of consumers, the purchasers of real
estate units from a developer would have a specialised forum called the "Real
Estate Regulatory Authority" which will be set up within one year from the date
of coming into force of the Act. In the interim, the appropriate Government (i.e.,
the Central or State Government) shall designate any other regulatory authority
or any officer preferably the Secretary of the department dealing with Housing,
as the Regulatory Authority.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Registration with the Regulatory Authority
The promoter has to register their project (residential as well as commercial)
with the Regulatory Authority before booking, selling or offering apartments for
sale in such projects. In case a project is to be promoted in phases, then each
phase shall be considered as a standalone project, and the promoter shall
obtain registration for each phase.
Further, in case of ongoing projects on the date of commencement of the Act
which have not received a completion certificate, the promoter of such project
shall make an application to the Regulatory Authority for registration of their
project within a period of three months of the commencement of the Act.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
The following types of projects shall not be required to be registered
before the Regulatory Authority:

Where the area of land proposed to be promoter does not exceed 500
square meters or the number of apartments to be constructed in the
project does not exceed eight apartments. However, the appropriate
Government (Central and State Government) may, if it considers
appropriate, reduce the threshold limit below 500 square meters or eight
apartments;
Projects where the completion certificate has been received prior to the
commencement of the Act;
Projects for the purpose of renovation or repair or re-development which
does not involve marketing, advertising, selling and new allotment of any
apartment plot or building.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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The application for registration must disclose the following information:

Details of the promoter (such as its registered address, type of


enterprise such proprietorship, societies, partnership, companies,
competent authority);
A brief detail of the projects launched by the promoter, in the past five
years, whether already completed or being developed, as the case may
be, including the current status of the projects, any delay in its
completion, details of cases pending, details of type of land and
payments pending;
An authenticated copy of the approval and commencement certificate
received from the competent authority and where the project is
proposed to be developed in phases, an authenticated copy of the
approval and commencement certificate of each of such phases;
The sanctioned plan, layout plan and specifications of the project, plan
of development works to be executed in the proposed project and the
proposed facilities to be provided thereof and the locational details of
the project;

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Proforma of the allotment letter, agreement for sale and conveyance
deed proposed to be signed with the allottees;
Number, type and carpet area of the apartments and the number and
areas of garages for sale in the project;
The names and addresses of the promoter's real estate agents, if any,
and contractors, architects, structural engineers affiliated with the project.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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A declaration by the promoter supported by an affidavit stating that:

he has a legal title to the land, free from all encumbrances, and in case
there is an encumbrance, then details of such encumbrances on the land
including any right, title, interest or name of any party in or over such land
along with the details;
the time period within which he undertakes to complete the project or the
phase; and
70% of the amounts realised for the real estate project from the allottees,
from time to time, shall be deposited in a separate account to be
maintained in a scheduled bank to cover the cost of construction and the
land cost and shall be used only for that purpose.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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Carpet Area
Under the Bill, developers can sell units only on carpet area, which means
the net usable floor area of an apartment. This excludes the area covered
by the external walls, areas under services shafts, exclusive balcony or
verandah area and exclusive open terrace area, but includes the area
covered by the internal partition walls of the apartment.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
70% of realisation from allottees in a separate bank account
The Act mandates that a promoter shall deposit 70% of the amount
realised from the allottees, from time to time, in a separate account to be
maintained in a scheduled bank. This is intended to cover the cost of
construction and the land cost and the amount deposited shall be used
only for the concerned project.
The promoter shall be entitled to withdraw the amounts from the separate
account, to cover the cost of the project, in proportion to the percentage
of completion of the project. However, such withdrawal can only be made
after it is certified by an engineer, an architect and chartered accountant
in practice that the withdrawal is in proportion to the percentage of
completion of the project.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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Revocation or lapse of registration
The Regulatory Authority may revoke the registration granted on
receipt of a complaint or suo moto or on the recommendation of
the competent authority in case (i) the promoter makes a default
in doing anything required under the Act or the rules or
regulations made thereunder; (ii) the promoter violates any
terms of the approvals granted for the project; and (iii) the
promoter is involved in any kind of unfair practice of
irregularities.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
The promoter is also required to get his accounts audited within six
months after the end of every financial year by a practicing chartered
accountant. , Further, he is required to produce a statement of accounts
duly certified and signed by such chartered accountant, and it shall be
verified during the audit that (i) the amounts collected for a particular
project have been utilised for the project; and (ii) the withdrawal has been
in compliance with the proportion to the percentage of completion of the
project.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
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Acceptance or refusal of registration
Upon receipt of an application by the promoter, the Regulator Authority
shall within a period of 30 days, grant or reject the registration.
Upon granting a registration, the promoter will be provided with a
registration number, including a login Id and password for accessing the
website of the Regulatory Authority and to create his web page and to fill
in the details of the proposed project.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Website of the Regulatory Authority
The promoter shall, upon receiving his login Id and password, create his web
page on the website of the Regulatory Authority and enter all details of the
proposed project including:

details of the registration granted by the Regulatory Authority;


quarterly up-to-date list of the number and types of apartments or plots or
garages, as the case may be, booked;
quarterly up-to-date status of the project along with the list of approvals
obtained and approvals pending subsequent to commencement certificate;
and
such other information and documents as may be specified by the regulations
made by the Regulatory Authority.

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Advertisement or prospectus issued by the promoter
The advertisement or prospectus issued or published by the promoter
should prominently mention the website address of the Regulatory
Authority, where all details of the registered project have been entered
and include the registration number obtained from the Regulatory
Authority and other similar details.
Where any person makes an advance or a deposit on the basis of the
information contained in the notice, advertisement or prospectus and
sustains any loss or damage because of any incorrect, false statement
included in these, he shall be compensated by the promoter in the
manner as provided under the Act. Also, if the person affected by such
incorrect, false statement contained in the notice, advertisement or
prospectus, intends to withdraw from the proposed project, his entire
investment (along with interest at such rate as may be prescribed and
compensation in the manner provided under the Act), will be returned to
him.

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Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Limit on receipt of advance payment
A promoter shall not accept a sum more than 10% percent of the cost of
the apartment, plot, or building, as the case may be, as an advance
payment or an application fee, from a person without first entering into a
written agreement of sale with such person and register the said
agreement of sale, under any law for the time being in force.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Restriction on addition and alteration in the plans
The promoter cannot make any addition or alteration in the approved and
sanctioned plans, structural designs, specifications and amenities of the
apartment, plot or building without the previous consent of the allottee.
The promoter also cannot make any other addition or alteration in the
approved and sanctioned plans, structural designs and specifications of
the building and common areas within the project without the previous
written consent of at least two-thirds of the allottees, other than the
promoter, who have agreed to take apartments in such a building.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Structural defect
In case any structural defect or any other defect in the workmanship,
quality or provision of services or any other obligations of the promoters
is brought to the notice of the promoter within a period of five years by
the allottee from the date of handing over possession, the promoter shall
rectify such defect without any further charge, within thirty days. If the
promoter fails to rectify such defect within such time, the aggrieved
allottee shall be entitled to receive appropriate compensation in the
manner as provided in the Act.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Refund of amount in case of delay in handing over possession

In case the promoter is unable to hand over possession of the apartment,


plot or building to the allottee (i) in accordance with the terms of the
agreement of sale; or (ii) due to discontinuance of his business as a
promoter on account of suspension; or (iii) revocation of his registration
or for any other reason, then the promoter shall be liable, on demand
being made by the allottee, to return the amount received by him from the
allottee with interest and compensation at the rate and manner as
provided under the Act. This relief will be available without prejudice to
any other remedy available to the allottee.
However, where an allottee does not intend to withdraw from the project,
he shall be paid interest by the promoter for every month of delay, till the
handing over of the possession, at a prescribed rate.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Overriding effect
The provisions of this Act shall have an overriding effect in case there is
any inconsistency between the provisions contained in this Act and in any
other law (including a state law) for the time being in force.
The Maharashtra Housing (Regulation and Development) Act 2012 has
been repealed by the Central Government.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)

Semester:
Semester: ninth
ninth semester
semester

Name
Name of
of the
the Subject:
Subject: Land
Land and
and Real
Real Estate
Estate Laws
Laws

Unit IV
DELHI RENT CONTRL ACT

Short title, extent and commencement . –


(1) This Act may be called the Delhi Rent Control Act, 1958.
(2) It 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 as are
specified in the First Schedule:
Provided that the Central Government; may, by notification in the Official
Gazette, extend this Act or any provision thereof, to any other urban area
included within the limits of the Municipal Corporation of Delhi of exclude
any are from the operation of this Act or any provision thereof.
(3) It shall come into force on such date (Note: Came into force on 9-2-
1959, vide S.O. 269, dated 31st January, 1959, published in the Gazette
of India, Pt. II, Sec.3 (ii), p.331) as the Central Government may, by
notification in the Official Gazette, appoint.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
COMMENTS
The Delhi Rent Control Act, 1958 is beneficial as also restrictive in
nature. The courts are under a legal compulsion to harmoniously read the
provisions of the Act so as to balance the rights of the landlord and the
obligations of the tenant toward each other keeping in mind that one of
the subjects of the legislature while enacting the Act was to curb the
tendancy of the greedy landlords to throw out the tenants, paying lower
rent, in the name of personal occupation and rent out the premises at the
market rate; M/s. Rahabhar Productions Pvt. Ltd. v.Rajendra K. Tandon,
AIR 1998 SC 1639.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Heirs of statutory tenant are entitled to same protection against eviction
as affordable to tenant under the Delhi Rent Control Act. As there is no
provision regulating the rights of heirs to intent the tenancy rights of the
tenant in respect of the premises, which are of commercial nature, the
tenancy right which is heritable devolves on the heirs under the ordinary
law of succession; Keshav Dass v.Prem Nath, AIR 1996 Del 47.
The provisions in section 2(I) (iii) of the act, which seek to restrict or limit
the right of the heirs, in so far as the statutory tenants of residential
premises are concerned and to the extent provided therein, are noting
any way discriminatory and do not offend the guarantee under Article 14
of the Constitution. The residential tenancy and the commercial tenancy
are not similarly placed. They belong to two different categories with
distinct features and characteristics of their own. No question of
discrimination arises; Gauri Shankar v. Union of India, AIR 1995 SC 55.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Act not to apply to certain premises.-
Nothing in this Act shall apply –
(a) To any premises belonging to the Government; (Note: The word “or”
omitted by Act 57 of 1988, sec.2 (w.e.f. 1-12-1988).
(b) To any tenancy or other like relationship created by a grant from the
Government in respect of the premises taken on lease, or requisitioned,
by the Government:
[(Note: Added by Act 4 of 1963, sec.2 (with retrospective effect) Provided
that where any premises belonging to Government have been or are
lawfully let by any person by virtue of an agreement with the Government
or otherwise, then, notwithstanding any judgment, decree or order of any
court or other authority, the provisions of this Act shall apply to such
tenancy;]
[(c) (Note: Ins. by Act 37 of 1988, sec.2 (w.e.f. 1-12-1988) To any
premises, whether residential or not, whose monthly rent exceeds there
thousand and five hundred rupees; or

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Section 3(c) is only prospective in character and has no retrospective

operation, and as such, it will not apply to the pending actions or

proceedings. The pending actions and proceedings shall continue to be

governed by the Rent Act as if in respect of the pending matters, section

3(c) is not on the statute book; Mrs. Nirmaljit Arora v. M/s Bharat Steel

Tubes Ltd., AIR 1991 Del 160.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Rent in excess of standard rent not recoverable. –
(1) Except where rent is liable to periodical increase by virtue of an
agreement entered into before the 1st day of January, 1939, no tenant
shall, notwithstanding any agreement to the contrary, be liable to pay
to his landlord for the occupation of any premises any amount in
excess of the standard rent of the premises, unless such amount is a
lawful increase of the standard rent in accordance with the provisions
of this Act.
(2) Subject to the provision of sub-section (1) any agreement for the
payment of rent in excess of the standard rent shall be construed as if
it were an agreement for the payment of the standard rent only.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Unlawful changes not to be claimed or received. –
(1) Subject to the provisions of this Act, no person shall claim or receive
any rent in excess of the standard rent, notwithstanding any agreement
to the contrary.
(2) No person shall, in consideration of the grant, renewal or continuance
of a tenancy or sub-tenancy or sub-tenancy of any premises,-
(a) Claim or receive the payment of any sum as premium or pugree of
claim or receive any consideration whatsoever, in cash or in kind, in
addition to the rent; or
(b) Except with the previous permission of the Controller, claim or receive
the payment of any sum exceeding one month’s rent of such premises as
rent in advance.
(3) It shall not be lawful for the tenant or any other person acting or
purporting to act on behalf of the tenant or a sub-tenant to claim or
receive any payment in consideration of the relinquishment, transfer or
assignment of his tenancy or sub-tenancy, as the case may be, of any
premises.
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Nothing in this section shall apply-
(a) To any payment made in pursuance of an agreement entered into
before the 1st day of January, 1939; or
(b) To any payment made under an agreement by any person to a
landlord for the purpose of financing the construction of the whole or part
of any premises on the land belonging to taken on lease by, the landlord,
if one of the conditions of the agreement is that the landlord is to let to
that person the whole or part of the premises when completed for the use
of that person or any member of his family:

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Revision of rent. –
Notwithstanding anything contained in this Act, the standard rent, or,
where no standard rent is fixed under the provisions of this Act in respect
of any premises, the rent agreed upon between the landlord and the
tenant, may be increased by ten per cent. every three years.
COMMENTS
Section 6A of the Act cannot be said to be retrospective simply for the
reason that if a party wants to immediately give effect to it, reliance is to
be placed on antecedent to its passing. The provision does not create
any liability for the past. The liability to increase the rent is only from
future, i.e., after the statute came into force, Merely because it has to be
seen that during the three years preceding the notice of the landlord to
increase. the rent, there has been no increase in rent, if cannot be said
that the provision becomes retrospective in its operation; National Co-
operative Consumer Federation of India Ltd. v. Jawala Pershad Ashok
Kumar Chopra, AIR 1998 Del 308.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Lawful increase of standard rent in certain cases and recovery of other
charges. –
(1) Where a landlord has at any time, 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, not being expenditure on decoration or tenantable
repairs necessary or usual for such premises, and the cost of the
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 [(Subs. by Act 57
of 1988, sec.3, for “seven and one-half per cent.” (w.e.f. 1-12-1988) ten
per cent.] of such cost.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
When a tenant can get the benefit of protection against eviction.
16. Restrictions on sub-letting. –
(1) Where at any time before the 9th day of June, 1952, a tenant has
sub-let the whole or any part of the premises and the sub-tenant is, at the
commencement of this Act, in occupation of such premises, then
notwithstanding that the consent of the landlord was not obtained for
such sub-letting, the premises shall be deemed to have been lawfully
sub-let.
(2) No premises which have been sub-let either in whole or in part on or
after the 9th day of June, 1952,without obtaining the consent in writing of
the landlord, shall be deemed to have been lawfully sub-let.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
After the commencement of this Act, no tenant shall, without the
previous consent in writing of the landlord,-
(a) Sub-let the whole or any part of the premises held by him as a tenant;
or
(b) transfer or assign his rights in the tenancy or in any part thereof.
(4) No landlord shall claim or receive the payment of any sum as
premium or pugree or claim or receive any consideration whatsoever in
cash or in kind for giving his consent to the sub-letting of the whole or any
part of the premises held be the tenant.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Notice of creation and termination of sub-tenancy. –
(1) Whoever, after the commencement of this Act, any premises are sub-
let either in whole or in part by the tenant with the previous consent in
writing of the landlord, the tenant or the sub-tenant to whom the promises
are sub-let may, in the prescribed manner, 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.
(2) Where, before the commencement of this Act, any premises have
been lawfully sub-let either in whole or in part by the tenant, the tenant or
the sub-tenant to whom the premises have been sub-let may, in the
prescribed manner, give notice to the landlord of the creation of the sub-
tenancy within six months of the commencement of this Act, and notify
the termination of such sub-tenancy within one month of such
termination.
.

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
THANK YOU

Chanderprabhu Jain College of Higher Studies & School of Law


Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)

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