Rent Control Act Telangana: Ensuring Fairness in Tenancy Agreements

Are you looking for clarity on the Rent Control Act Telangana? The Rent Control Act Telangana is a crucial legislation regulating the state's rental market. It's designed to ensure fairness for both landlords and tenants. Let's explore its key provisions and how they impact rental agreements in Telangana.

A Look at the Telangana Rent Control Act

The Telangana Buildings (Lease, Rent and Eviction) Control Act is the primary legislation governing rent control in Telangana. Let's break down its main features:

Fair Rent: 

This Act establishes a system for determining "fair rent" for residential and commercial buildings. The aim is to ensure that tenants are not burdened with excessively high rents, providing them with financial protection.

Eviction Restrictions: 

Landlords are limited in their ability to evict tenants, except under specific conditions outlined in the Act. These conditions typically include situations such as nonpayment of rent, property misuse, or the landlord's genuine need for the property.

Tenant Protections: 

Tenants are afforded several protections under this Act. They have the right to receive a receipt for rent payments, ensuring transparency in financial transactions. Moreover, if a dispute arises with the landlord, tenants have the option to deposit rent with the court, safeguarding their rights and interests.

Importance of Rent Control in the State of Telangana

Rent control in Telangana, governed by the Telangana Buildings (Lease, Rent and Eviction) Control Act of 1960, holds significance for several reasons:

Benefits for Tenants:

1. Affordability: Rent control ensures that even low and middle-income earners can afford housing in urban areas of Telangana, where market rents might otherwise be much higher. This stability is crucial for individuals and families.
2. Security of Tenure: The Act restricts eviction except for specific reasons outlined in the Act. This provides tenants with security of tenure, reducing the risk of sudden displacement due to rent increases or the landlord reclaiming the property.

Application of Telangana Rent Control Act

The Telangana Buildings (Lease, Rent and Eviction) Control Act applies to most residential and commercial buildings in Telangana, with a few exceptions. Here's where you can expect the Act to apply:

Geographic Areas:

• The Act covers all of Telangana, including major cities like Hyderabad, Secunderabad, Warangal, Karimnagar, Nizamabad, and Ramagundam.
• It also extends to municipal corporations and municipalities across the state.

Types of Buildings:

• The Act generally covers residential buildings.
• Most commercial buildings also fall under its jurisdiction.

Definition of Building

The term "building" refers to any house or hut, or part of a house or hut, rented or to be rented separately for residential or nonresidential purposes. It includes:

• This includes garages, gardens, grounds, and outhouses, if any, linked to the house or hut, rented or to be rented with it.
• Also covered are any furniture or fittings installed by the landlord for use in the house or hut. However, rooms in hotels or boarding houses are not included.

Notice of Vacancy 

1. Landlords must notify the authorised officer within ten days when a building becomes vacant due to their cessation of occupancy, termination of a tenancy, eviction of the tenant, release from requisition, or any other reason.
2. The notice should include prescribed particulars.
3. In certain areas like Municipal Corporations or Municipalities, if a tenant puts another person in occupation of the building and does not reoccupy it within three months, the tenancy is deemed terminated. The tenant or landlord, if aware, must inform the authorised officer within seven days of such termination.
4. If the tenant obtains written permission to reoccupy within six months, the three months is extended to six months.
5. If the authorised officer or the Government doesn't inform within fifteen days that the building is required for specific purposes, the landlord is free to let it out or occupy it.
6. The authorised officer, upon application from the landlord or direction from the Government, may release the building for the landlord's occupation.
7. If the landlord fails to inform the authorised officer of his intention to occupy the building, and if the building is required for specified purposes, the Government or authorised officer may give notice to the landlord.
8. The landlord cannot let out the building or occupy it before the expiry of fifteen days unless he receives intimation that the building is not required for specified purposes.

Determination of Fair Rent

1. The Controller, upon application by the tenant or landlord of a building, determines the fair rent after conducting an enquiry.

2. When fixing the fair rent, the Controller considers:

• The rental rates currently in effect in the area for comparable housing during the twelve months preceding April 5, 1944.
• The rental value is recorded in the property tax assessment book of the relevant local authority for the same period.
• Circumstances of the case, including any additional sums paid by the tenant after April 5, 1944.

3. For residential buildings, the Controller may allow increases based on the following criteria:

• Up to a 12.5% increase if the rent doesn't exceed Rs. 25 per month.
• Up to 18.75% increase if the rent is between Rs. 25 and Rs. 50 per month.
• Up to 37.5% increase if the rent exceeds Rs. 50 per month.

4. For nonresidential buildings, the Controller may allow increases based on the following criteria:

• Up to 56.25% increase if the rent doesn't exceed Rs. 50 per month.
• Up to 75% increase if the rent exceeds Rs. 50 per month.

5. In cases where the fair rent was fixed before the Act's commencement, the Controller, upon the landlord's application, allows increases as entitled under the Act.

Increase in Fair Rent and Cases Admissible

Once the fair rent of a building is determined under this Act, no further increase is allowed unless the landlord has made additions, improvements, or alterations at their expense, and if the building is occupied by a tenant who requested such changes.

• The increase cannot exceed six per cent per annum of the cost of the additions, improvements, or alterations.
• Considering the changes made, the increased fair rent cannot surpass the fair rent payable under this Act for a similar building in the same area.
• The Controller resolves any disagreement between the landlord and tenant regarding the increase.

If there's a decrease in the accommodation or amenities provided after the fair rent is fixed under this Act, the tenant can request a reduction in the fair rent. Any disagreement between the landlord and tenant about the reduction is resolved by the Controller.

Rights of Tenants

Here are the rights of tenants: 

1. Every tenant who pays rent or advance is entitled to receive a signed receipt from the landlord or their authorised agent.
2. If a landlord refuses to accept or avoids receiving rent from a tenant, the tenant can send a written notice to the landlord requesting them to specify a bank where the rent can be deposited within ten days.
   • The specified bank must be located in the same city, town, or village as the building, or within three miles if there's no bank in the vicinity.
   • The tenant must deposit the rent in the specified bank and continue to do so for future payments.
3. If the landlord doesn't specify a bank, the tenant should send the rent via money order, deducting the money order commission.
   • The tenant continues this method until the landlord indicates a willingness to accept rent or specifies a bank.
4. If the landlord refuses to accept rent sent via money order, the tenant can deposit the rent before the prescribed authority, following the specified procedure for depositing subsequent rents.
5. The deposited amount may be withdrawn by the rightful person according to conditions set by the controller.
6. A tenant cannot be evicted without following the provisions outlined in this section or sections 12 and 13.
   • If a tenant denies the landlord's title or claims permanent tenancy rights, the Controller decides whether the denial or claim is genuine. If found genuine, the landlord can sue for eviction in a civil court, which may grant eviction based on specified grounds.
7. If a landlord wishes to evict a tenant, they must apply to the Controller for direction. After giving the tenant a chance to respond, if the Controller is satisfied, they can proceed with the eviction process.

Rights of Landlord

Here are the rights of landlords:  

1. Despite the provisions of this Act, the Controller can, upon a landlord's request, order a tenant to vacate a building if:
   • The landlord genuinely needs the building for repairs, alterations, or additions that require it to be vacant.
   • The building has no more than two floors and the landlord intends to demolish it immediately to construct a new building on the same site.
2. Before issuing such an order, the Controller requires the landlord to assure that upon completion of the repairs, alterations, or additions, or the new building, the tenant will be offered re-occupation.
3. If the tenant refuses the offer, the landlord must notify the authorised officer of the vacancy.
4. This section does not allow a landlord, who reclaimed possession for repairs, alterations, or additions, to convert a residential building into a non-residential one, or vice versa, without permission from the Controller at the time of issuing the order.

Exemptions and Limitations Under the Telangana Rent Control Act

Here are the exemptions and limitations under the Telangana rent control act: 

1. The Government has the authority to exempt certain buildings or classes of buildings from the provisions of this Act by issuing a notification in the Telangana Gazette.
2. The exemptions may come with specific conditions or terms outlined in the notification.
3. This Act does not cover the following buildings:
   • Buildings owned by the State Government, Central Government, Cantonment Board, or any local authority.
4. Buildings constructed or substantially renovated, before or after the Act's commencement, for fifteen years from the completion date of such construction or renovation.

Special Provisions for Government Employees, Members of the Armed Forces, and Widows

Members of the Armed Forces

1. If a landlord, who is a released or retired person from any armed forces, or a dependent of a deceased member of the armed forces, requires the premises for their use, they can apply to the Court within one year from the date of release, retirement, or death of the member, or within one year from the commencement of this Act, whichever is later, to recover immediate possession of the premises.

2. If a landlord, who is a member of any armed forces, has less than one year left before retirement and requires the premises for their use after retirement, they can apply to the Court at any time within one year before the date of retirement to recover immediate possession of the premises.

Government Employees

1. If a landlord, retired from the State or Central Government, requires the premises for their use, they can apply to the Court within one year from the date of retirement or within one year from the commencement of this Act, whichever is later, to recover immediate possession of the premises.
2. If a landlord, currently employed by the State or Central Government, has less than one year left before retirement and requires the premises for their use after retirement, they can apply to the Court at any time within one year before the date of retirement to recover immediate possession of the premises.
3. If the landlord, spouse, or dependent son or daughter mentioned in subsection (1) or subsection (2) has let out more than one premises, they can choose one premises and apply for recovery of possession under that subsection for that chosen premises.

Widows

1. If the landlord is a widow, handicapped person, or a person aged sixty-five years or older, and they require the premises for themselves, their family, or anyone living with them, they can apply to the Court to recover immediate possession of the premises.

2. If the landlord mentioned in subsection (1) has let out more than one premises, they can choose one residential and one non-residential premises each and apply for recovery of possession for those chosen premises.

Role of the Controller and Appellate Authorities

The Controller or appellate/revisional authority must announce every order under this Act in open Court either on the day of the final hearing or on a later date for which notice will be provided to the parties.

Process for filing appeals and revisions

Appeal:

1. Any person dissatisfied with a Controller's order can file an appeal within thirty days from the order's date.

• In cities like Hyderabad and Secunderabad, the appeal goes to the Chief Judge, Small Causes Court. Elsewhere, it goes to the Subordinate Judge or Principal Subordinate Judge with jurisdiction.
• The time taken to obtain a certified copy of the order is excluded from the thirty days.

2. The appellate authority can grant a stay on further proceedings pending the appeal.
3. The appellate authority requests the case records from the Controller, hears both parties, conducts any necessary enquiry, and then decides on the appeal.

Revision:

1. The High Court can, upon application by any aggrieved party, review the records related to orders or proceedings under this Act. This includes orders by the Controller in execution or by the appellate authority on appeal.
2. The High Court determines the legality, regularity, or propriety of the order or proceeding and passes appropriate orders.
3. The High Court has discretion over the costs and incidents of proceedings under this provision.

Penalties For Non-Compliance With the Act

If anyone breaks the rules outlined in sections 3(1), (2), (4)(b), (5), and (6), sections 7(1)(a) and (2)(a), section 14(1), section 18, or section 28, they can be fined up to two thousand rupees.

Similarities And Differences Between the Telangana and Andhra Pradesh Rent Control Acts

Feature	Telangana Buildings (Lease, Rent and Eviction) Control Act, 1960	Andhra Pradesh (Rent, Control, Stabilisation and Eviction of Tenants) Act, 2016
Year of Enactment	1960	2016 (Relatively new legislation)
Applicability	Inherited from the pre-partition Hyderabad House (Rent, Eviction and Lease) Control Act, 1954. Applies throughout Telangana.	A relatively new Act replacing the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960. May not be applicable in all parts of Andhra Pradesh yet.
Exemptions	Newer constructions (specific exemptions vary depending on municipality/corporation and year of construction). Luxury housing or high-end commercial properties may not be covered.	Exemptions might be broader and may vary across districts. Newer constructions in some areas might be completely exempt.
Fair Rent Determination	Similar provisions for determining fair rent for residential and commercial properties.	The fair rent determination process might be different.
Eviction Grounds	Similar grounds for eviction as outlined in the Telangana Act (non-payment of rent, misuse of property, landlord requiring the property for own use).	Eviction grounds might be slightly different or have more specific conditions compared to the Telangana Act.

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The Rent Control Act Telangana plays a pivotal role in ensuring fair and equitable housing practices within the state. By regulating rent prices, protecting tenant rights, and providing mechanisms for dispute resolution, it fosters stability and security in the rental market, benefiting both landlords and tenants.

NoBroker simplifies the process by providing seamless legal assistance tailored to your needs. Our experienced lawyers understand the Rent Control Act, Telangana, inside out. Whether you're a tenant needing clarity on rent regulations or a landlord navigating eviction, we're here to help. Don't handle legal complexities alone – schedule a consultation with NoBroker Legal Services today! Download the app for convenient access to effortless legal support.

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