Section 4State of Punjab Act

Section 4: Determination of fair rent

East Punjab Urban Rent Restriction Act, 1949

Determination of fair rent.

(1)

The Controller shall on application by the tenant or landlord of a building or rented land fix the fair rent for such building or rented land after holding such inquiry as the Controller thinks fit.

(2)

In determining the fair rent under this Section, the Controller shall first fix a basic rent taking into consideration -

(a)

the prevailing rates of rent in the locality for the same or similar accommodation in similar circumstances during the twelve months prior to the 1st January, 1939; and

(b)

the rental value of such building or rented land if entered in property tax assessment register of the municipal, town or notified area committee, cantonment board, as the case may be, relating to the period mentioned in clause (a):

[* * * * *] [Proviso added by East Punjab Act, XIII of 1949, Section 2 and subsequently omitted by the Punjab Adaptation of Laws (State and Concurrent Subjects) Order, 1968.]

(3)

In fixing the fair rent of a residential building the Controller may allow, if the basic rent -

(i)

in the case of a building in existence before the 1st January, 1939 -

(a)

does not exceed Rs. 25 per mensem, an increase not exceeding 8- 1/3 percent on basic rent;

(b)

exceeds Rs. 25 per mensem but does not exceed Rs. 50 per mensem, an increase not exceeding 12-½ per cent on such basic rent;

(c)

exceeds Rs. 50 per mensem, an increase not exceeding 25 per cent on such basic rent;

(ii)

in the case of a building constructed on or after the 1st January, 1939-

(a)does not exceed Rs. 25 per mensem, an increase not exceeding 25 percent on such basic rent;

(b)exceeds Rs. 25 but does not exceed Rs. 50 per mensem, an increase not exceeding 37-½ per cent on such basic rent;

(c)exceeds Rs. 50 per mensem, an increase not exceeding 50 per cent on such basic rent.

(4)

In fixing the fair rent of a scheduled building the Controller may allow, if the basic rent -

(i)

in the case of a building in existence before the 1st January, 1939 -

(a)

does not exceed Rs. 25 per mensem, an increase not exceeding 13- 1/3 per cent on such basic rent;

(b)

exceeds Rs. 25 but does not exceed Rs. 50 per mensem, an increase not exceeding 17-½ per cent on such basic rent;

(c)

exceeds Rs. 50 per mensem, an increase not exceeding 30 per cent on such basic rent;

(ii)

in the case of building constructed on or after the 1st January, 1939 -

(a)does not exceed Rs. 25 per mensem, an increase not exceeding 30 per cent on such basic rent;

(b)exceeds Rs. 25 but does not exceed Rs. 50 per mensem, an increase not exceeding 42-½ per cent on such basic rent;

(c)exceeds Rs. 50 per mensem, an increase not exceeding 55 per cent on such basic rent.

(5)

In fixing the fair rent of non-residential building or rented land the Controller may allow, if the basic rent -

(i)

in the case of a building in existence before the 1st January, 1939, or in the case of rented land -

(a)

does not exceed Rs. 50 per mensem, an increase not exceeding 37-½ per cent on such basic rent;

(b)

exceeds Rs. 50 per mensem, an increase not exceeding 50 per cent on such basic rent;

(ii)

in the case of a building constructed after the 1st January, 1939 -

(a)does not exceed Rs. 50 per mensem, an increase not exceeding 50 per cent on such basic rent;

(b)exceeds Rs. 50 per mensem, an increase not exceeding 100 per cent on such basic rent.

(6)

Nothing in this section shall be deemed to entitle the Controller to fix the fair rent of a building or rented land at an amount less than the rent payable for such building or rented land under a subsisting lease entered into before the first day of January, 1939.

Sec 3 — Exemptions

Sec 5 — Increase in fair rent in what case admissible

Disclaimer: This section is reproduced for general informational and reference purposes only. Always verify against the latest official gazette and consult a qualified advocate before relying on any provision.