BENGALURU: In order to stimulate the real estate market affected by Covid and to strengthen people’s trust in securing tenants without the teething troubles of lengthy legal disputes, the state government has decided to implement the newly passed model law of the central government’s lease, which was approved last month.
The Karnataka version of the law will be presented to cabinet in the next 15 days.
Speaking to the media on Thursday, Treasury Secretary R. Ashoka said the government wanted to resolve a major housing crisis in the state, particularly in Bengaluru, where landlords are afraid to rent out their properties for fear of legal problems.
“According to our estimates, there are 2 to 3 lakh empty houses in Bengaluru that are not being rented out by landlords due to legal disputes. The model rental law will do a lot to calm their minds, ”said Ashoka.
The Union government put the number of vacant houses in Karnataka at 7.6 lakh in the 2011 census, making it fourth of the five best states in the country.
According to the plans of the state government tailored to Karnataka, the new legal provisions will provide for minimal intervention by the state and a legal agreement between the landlords and tenants for a set amount will be final.
The regulations also stipulate that the deposits collected by the landlord must not exceed two months’ advance rent for residential property and six months in advance for commercial property.
“The agreements signed by both parties are then uploaded to the finance department’s website and are available to both parties,” said Ashoka.
According to officials, once the agreements are uploaded, they will also be of assistance to the state government to intervene in the event of a dispute under the law.
According to the law, the government must appoint a rental agency, which should not be below the rank of deputy collector.
In Karnataka this would mean an officer with additional commissioner rank in urban areas and the deputy commissioners in rural areas.
The government will also set up rental courts (not below the rank of additional collector / magistrate) and rental courts (not below the rank of district judge or district judge).
The entire litigation, if any, must be resolved by all three levels of the legal protection system within 60 days or two months.
According to the plans, the state government is now repealing the existing Rent Control Act of 1999, which applies to apartments with rents below 3,500 rupees in the state, and brings the new law into the next legislative period.
