NEW DELHI: The Delhi High Court has described the Delhi Rent Control Act as an “outdated law,” criticizing its “severe” misuse that has left property owners in distress as affluent tenants “unfairly occupy properties for decades.”
Justice Anup Jairam Bhambani was reviewing petitions challenging the 2013 decisions of the Additional Rent Controller (ARC), which had denied eviction petitions from property owners based in the UK and Dubai in Sadar Bazar, siding with the tenants.
“This court must note that while managing the Rent Control Roster, it has uncovered numerous instances of wealthy tenants, enjoying financial stability, unjustly residing in properties for decades at minimal rent. As a consequence, landlords are driven into severe financial hardship due to the egregious misuse of an antiquated law known as the Delhi Rent Control Act,” the court stated.
The High Court consequently permitted the petitioners to evict the tenants.
The petitioners argued for eviction based on their operation of two restaurants in London, seeking the space to expand their business in India.
The ARC had rejected the eviction request, asserting that the petitioners were well-settled, running their restaurants in London and Dubai, and not in need of the premises for their “livelihood or survival,” concluding that their genuine requirement fell short of being an “actual need.”
Furthermore, it stated that the premises were too small to operate a sit-down restaurant.
The High Court overturned the eviction ruling, clarifying that “the financial well-being of a landlord, or the financial difficulties faced by a tenant, are not pertinent factors when deciding an eviction petition under Section 14(1)(e) of the DRC Act.”
The court further indicated that it was solely up to the petitioners to decide whether they desired to run a full-fledged restaurant or a smaller takeaway service.
