The Delhi Rent Control Act, 1958
6. Standard rent. –
(1) Subject to the provisions of sub-section (2), “standard rent”, in relation to any premises means –
(A) In the case of residential premises-
(1) Where such premises have been let out at any time before the 2nd day of June,1944,-
(a) If the basic rent of such premises per annum does not exceed six hundred rupees, the basic rent; or
(b) If the basic rent of such premises per annum exceeds six hundred rupees, the basic rent together with ten per cent, of such basic rent;
(2) Where such premises have been let out at any time on or after the 2nd day of June, 1994,-
(a) In any case where the rent of such premises has been fixed under the Delhi and Ajmer- Merwara Rent Control Act, 1947 (19 of 1947), or the Delhi and Ajmer Rent Control Act, 1952 (37 of 1952),-
(i) If such rent per annum does not exceed twelve hundred rupees, the rent so fixed; or
(ii) If such rent per annum exceeds twelve hundred rupees, rent so fixed together with ten per cent. of such rent;
(b) In any other case, the rent calculated on the basis of [(Note: Subs. by Act 57 of 1988, sec.3, for “seven and one-half per cent.” (w.e.f. 1-12-1988) ten per cent]. per annum of the aggregate amount of the [(Note: Subs. by Act 57 of 1988, sec.3, for “reasonable” (w.e.f. 1-12-1988) actual] cost of construction and the market price of the land comprised in the premises on the date of the commencement of the construction :
(Note: Proviso omitted by Act 57 of 1988, sec.3 (w.e.f. 1-12-1988)
(B) In the case of premises other than residential premises-
(1) Where the premises have been let out at any time before the 2nd day of June, 1944, the basic rent of such premises together with ten per cent. of such basic rent:
Provided that where the rent so calculated exceeds twelve hundred rupees per annum, this clause shall have effect as if for the words “ten per cent.”, the words “fifteen per cent.” had been substituted;
(2) Where the premises have been let out at any time on or after the 2nd day of June, 1944,-
(a) In any case where the rent of such premises has been fixed under the Delhi and Ajmer-Merwara Rent Control Act, 1947 (19 of 1947) or the Delhi and Ajmer Rent Control Act, 1952 (38 of 1952),-
(i) If such rent per annum does not exceed twelve hundred rupees, the rent so fixed; or
(ii) If such rent per annum exceeds twelve hundred rupees, the rent so fixed together with fifteen per cent. of such rent;
(b) In any other case, the rent calculated on the basis of [(Note: Subs. by Act 57 of 1988, sec.3, for “seven and one-half per cent” (w.e.f. 1-12-1988) ten per cent] per annum of the aggregate amount of the [(Note: Subs. by Act 57 of 1988, sec.3, for “reasonable” (w.e.f. 1-12-1988) actual] cost of construction and the market price of the land comprised in the premises on the date of the commencement of the construction:
(Note: Proviso omitted by Act 57 of 1988, sec.3 (w.e.f. 1-12-1988)
(2) Notwithstanding anything contained in sub-section (1),-
(a) In the case of any premises, whether residential or not, constructed on or after the 2nd day of June, 1951, but before the 9th day of June, 1955, the annual rent calculated with reference to the rent at which the premises were let for the month of March, 1958, or if they were not so let, with reference, to the rent at which they were last let out, shall be deemed to be standard rent for a period of seven years from the date of the completion of the construction of such premises; (Note: The word “and” omitted by Act 57 of 1988, sec.3 (w.e.f. 1-12-1988)
(b) In the case of any premises, whether residential or no, constructed on or after the 9th day of June, 1955, including premises constructed after the commencement of this Act [(Note: Ins. by Act 57 of 1988, sec.3 (w.e.f. 1-12-1988) but before the commencement of the Delhi Rent Control (Amendment) Act, 1988], the annual rent calculated with reference to the rent agreed upon between the landlord and the tenant when such premises were first let out shall be deemed to be the standard rent for a period of five years from the date of such letting out.
[(c) (Note: Ins. by Act 57 of 1988, sec.3 (w.e.f. 1-12-1988) In the case of any premises, whether residential or not, constructed on or after the commencement of the Delhi Rent Control (Amendment) Act, 1988 and to which the provisions of this Act are made applicable by virtue of clauses
(d) of section 3, the rent calculated on the basis of ten per cent, per annum of the aggregate amount of the actual cost of construction of the premises and the market price of the land comprised in the premises on the date of commencement of the construction, of the premises shall be deemed to be the standard rent]
(3) For the purpose of this section, residential premises include premises let out for the purpose of a public hospital, an educational institution, a public library, reading room or an orphanage.
COMMENTS
For the purpose of finding out reasonable rent, the assessing authority has to keep in view the principles of standard rent as deducible from the provisions of Rent Control Law which permits cost of construction being adopted as basis for calculating the retable value in the case of self-occupied properties. It is fair and reasonable if the assessing authority works out the cost of land by reference to the date of commencement of construction and the reasonable amount spent in construction. That exercise is by itself time consuming exercise, yet once it is done the facts found would be relatable to the facts as actually exist. The Delhi Rent Control Act nowhere contemplates such an exercise being undertaken for the purpose of finding out standard rent so as to ascertain the reasonable letting value; Municipal Corporation of Delhi v. Ravish Chandra Rastogi, AIR 1998 Del 23.
The Delhi Rent Control Act, 1958
