Everything you need to know about Maharashtra rent control act

Maharashtra Rent Control Act - majheghar

The Rent Control Act regulates home leasing, and each state has its version of the law. Maharashtra Rent Control Act, 1999 replaces the Bombay Rent Control Act and covers the entire state. This act helps to maintain some of the real estate builders in Maharashtra.


The first rent law in India was passed in 1915 during the Bombay Presidency and then again in 1939. The Bombay Rents, Hotel, and Lodging House Rates Control Act, 1947, was eventually replaced. The Maharashtra Rent Control Act, 1999, is the ultimate Act to control the state’s rental housing market and real estate property, replacing all previous Acts.

The Maharashtra Rent Control Bill, 1999, was enacted by the Legislative Assembly and the Legislative Council, with revisions to unify the state’s three different rent control legislation.

Duties of the landlord and tenant under the Maharashtra Rent Control Act:

Rent conditions:

From the Act’s inception, the landlord retains the authority to set the rent and increase it at 4% per year. If 70 percent of the tenants sign a consent form, the landlord can increase the rent by 15% annually for improvements and alterations.

Eviction conditions:

According to Section 25, a landlord can reclaim ownership of any premises if the court determines that the premises are reasonable and authentic. The landlord can also reclaim possession if the tenant builds a permanent construction on the builder’s real estate in Maharashtra without the landlord’s approval.

The landlord can reclaim possession if the tenant, his agent, servant, anyone claiming under the tenant, or anybody dwelling with the tenant has been found guilty of conduct that is an irritation or disturbance to the next house.

Rebuilding guidelines:

For reconstruction, the landlords must meet several requirements. They must do specific tasks, as outlined in section 6, including:

  • Securing adequate finances to complete the work.
  • The appropriate municipal authorities should prepare and approve the proposed building’s plans.
  • The number of residential units in the new building must not be less than the number of residential units in the old building;
  • It must complete demolition work on the old building within three months, and construction on the new building must be completed within 15 months.
  • The carpet area of the new building’s premises must be the same as the old building’s.
  • If the landlord guarantees that the carpet area of the premises authorized in the new building will be the same as it was in the previous building, the tenants of the old building will be offered the new building’s premises.

Responsibility for the repair of premises:

Every landlord is required by the Act to keep the premises in good repair. If the landlord fails to make repairs, the tenant can give them a fifteen-day notice.

If the landlord refuses to comply with the notice, the tenant can do the repairs themselves. And deduct the costs from their rent or recover the money in some other way. The amount recoverable should not exceed one-fourth of the tenant’s rent for that year.

The legalization of the pagdi system:

A pagdi is a fine, premium, or other payment paid to a landlord that has been legalized under Section 56 of the Rent Control Act 1999. The Pagdi system ensures that the tenant’s rent will remain nominal despite price inflation or other adjustments.

The pagdi system is prominent in a few neighborhoods of South Mumbai, where some tenants pay a monthly rent of Rs 500 even while market rates are as high as Rs 60,000.

Transfer of tenancy:

According to the Act, it is legal for a tenant to accept money in exchange for relinquishing or transferring his tenancy. In Mumbai, roughly 33% of the total transaction value is paid in cash to the landlord to complete the tenancy transfer.


As a result, the Maharashtra Rent Control Act is a comprehensive law that clarifies the many aspects of rental circumstances for builders in Maharashtra. This Act eliminates the ambiguity in these areas and establishes a clear set of guidelines for both landlords and tenants to follow in such instances.

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