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Traders divided over new rent control act

Published: 25th May 2013 10:49 AM  |   Last Updated: 25th May 2013 10:49 AM   |  A+A-

Though a faction of the traders hails the new rent control act to be introduced in the state, some are apprehensive. The draft of the Kerala Buildings (lease, standard rent and other facilities) Bill 2012 was debated recently in the state capital and modifications have been carried out in the draft bill. It will be soon debated in the state assembly, it is learnt.

All buildings, other than those coming under government and semi-government, will come under the purview of the new bill. The new bill   will ensure security of ownership and rent to owners. It is expected that when the new bill comes into existence, the disputes over rent could be settled amicably.

T. Nasarudheen, president, Kerala State Vyapari Vyavasayi Ekopana Samithi said the new rent control act is welcome in its present form and should be implemented soon.

“Earlier some of the provisions in the bill were solely in favor of the landlord, but which are eliminated now. Now, all the rental transactions have came under the purview of the new act which is also a welcome move,” he added.

As per the provisions of the present bill, rent cannot be increased over 20 per cent every three years. The lease deed should be registered. The registration fee will be reduced to 1.5 per cent from the stipulated two per cent. But, the condition that the information provided in the lease deed should be intimated to the police has also been exempted, which was a major demand from the traders community.

Expressing a different view, ES Biju, secretary, Kerala State Vyapari Vyavasayi Samithi said though some of the provisions were eliminated, there still have areas which make the act not in favor of the traders.

“The retail traders are on the verge of extinction now. The new rent control act gives the power to the owners to discontinue the contract after the stipulated time period which is not good for the traders as it will take some time to flourish any business in any area. If the landlord wants to expel the traders in months he can do it without further thinking as the new act gives his that power,” he added.



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