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Standard Rent Under Assam Act

This document defines standard rent under the rent control laws of Delhi, India. It provides that standard rent is the basic rent for residential premises let before 1944, or rent fixed under previous rent control acts. For residential premises let after 1944, standard rent is 10% of construction and land costs. For non-residential premises, it is the basic rent plus 10-15% for those let before 1944, or rent fixed under previous acts or 10% of construction and land costs for those let after 1944. Standard rent applies for 7 years for premises built from 1951-1955, and 5 years for those built after 1955.

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82 views2 pages

Standard Rent Under Assam Act

This document defines standard rent under the rent control laws of Delhi, India. It provides that standard rent is the basic rent for residential premises let before 1944, or rent fixed under previous rent control acts. For residential premises let after 1944, standard rent is 10% of construction and land costs. For non-residential premises, it is the basic rent plus 10-15% for those let before 1944, or rent fixed under previous acts or 10% of construction and land costs for those let after 1944. Standard rent applies for 7 years for premises built from 1951-1955, and 5 years for those built after 1955.

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Shayan Zafar
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. 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 - Mewar 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.

Common questions

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'Standard rent' is significant in rent control as it sets a legal framework to ensure rental prices remain fair and stable, preventing extortionate increases and providing predictable conditions for both landlords and tenants, mitigating inflation-driven disputes .

For non-residential premises let out on or after June 2, 1944, if the rent is fixed by the Delhi and Ajmer-Merwara Rent Control Acts and the rent does not exceed twelve hundred rupees per annum, the rent so fixed; if it exceeds, then rent plus fifteen percent .

Premises let out for public purposes such as hospitals, educational institutions, public libraries, reading rooms, or orphanages are included in the category of residential premises within the legislation .

The amendment replaced 'reasonable' with 'actual' cost of construction in the rent calculation formula, leading to a more transparent and objective basis for rent determination tied directly to tangible expenses as opposed to subjective evaluations .

The standard rent for premises let out after the commencement of the Delhi Rent Control (Amendment) Act, 1988, is calculated on the basis of ten percent per annum of the aggregate amount of the actual construction cost and the market price of the land on the construction commencement date .

If the calculated rent exceeds twelve hundred rupees per annum, the ten percent addition to the basic rent is replaced with fifteen percent for non-residential premises let out before June 2, 1944 .

The date of construction commencement is crucial as it fixes the market price of the land which, along with the actual construction cost, forms the basis for determining standard rent, ensuring that historic property values do not influence current rental assessments .

For residential premises rented before June 2, 1944, if the basic rent per annum exceeds six hundred rupees, the standard rent is determined by the basic rent together with an additional ten percent of such basic rent .

The Act 57 of 1988 replaced 'seven and one-half percent' with 'ten percent' for purposes of calculating rent per annum of the aggregate amount of the actual cost of construction and market price of the land for premises let out on or after June 2, 1994, under the Delhi and Ajmer Rent Control Acts .

For premises constructed between June 2, 1951, and June 9, 1955, the standard rent is the annual rent calculated with reference to the rent at which the premises were let for March 1958, or if not let, the rent at which they were last let, deemed for seven years from the completion date .

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