Fair Rent Reference PDF

Architectural Practice in India Chaptes 20-Fair Rent replace. Chapter 20 i. Provide as few construction...

Architectural Practice in India Chaptes 20-Fair Rent replace. Chapter 20 i. Provide as few construction joints as possible. Seal the gaps FAIR RENT between stone architraves and brick walls and between architraves and aluminium windows properly with silicon adhesives. The need for Architects to know what fair rent is and how it is calculated arises on two counts. Firstly, the economic factor including 4] Prof. Madhav Deobhakta in his presentation stressed that Building fair rent of premises is an important element while planning a project. collapses are "Avoidable tragedies" if minor repairs are carried out Secondly there are disputes betweenthe owner of a property and his at three or five year interval. He stressed the need for proactive tenants about payment of rent. These disputes involve many issues. approach on the part of all the agencies concerned with unsafe buildings. Instead of merely issuing notices to owners and Meaning of Fair Rent: Fair Rent means a reasonable rent charged by occupants, the civic authorities need to educate them about the owner or landlord to his tenants for the use of his premises. The urgent need to come together, pool resources, cary out repairs degree of fairness depends upon the prevailing economic situation under the guidance of an eminent structural engineer and get in the country, demand and supply position of premises available the cost reimbursed from MHADA as far as cessed buildings are for renting out and the capacity of tenants to pay rent-especially concerned. Members of housing societies, in the interest of their for residential accommodation. Every owner expects retum from own safety, cooperate with management and cary out preventive investment in property comparable to other forms of investments. maintenance every three years. He urged the participants to In the case of acute shortage of premises some owners are prone adopt a missionary role to mobilize the occupants of their own to charge exorbitant rents. If the tenant's right of occupation is not buildings where they live and work to see that their buildings are protected by law, he will have to either pay the rent demanded by in a proper state of repair. the landlord or vacate the premises and move into smaller or distant premises. In conclusion, all stake-holders in the building and housing industry, whether they are civic officials, building contractors Need For Rent Control: During early 1930's- the years of world-wide or professionals,must play their roles in a proactive manner to Depression,many residential premises were vacant. In most cities and avoid loss of human life and to preserve our valuable building towns, there were boards displayed announcing availability of premises stock because we have limited resources and the cost of repairs on rent. However during late 1930's, the cities and towns started is escalating every year. growing in terms of population, resulting in scarcity of premises. The landlords exploited this situation by charging exorbitant rent. It was for this reason the then government introduced The Bombay Rent Restriction Act, 1939, in order to curb this malpractice. This act was superseded by the Bombay Rents. Hotel and Lodging House Rates Control Act, 1947. In order to obtain higher rents without creating a permanent tenancy, landlords resorted to the system of" Leave &t License". The premises were givern for a periodof eleven months at a time. The consideration charged was known as "compensation". To make it appear as if a furnished flat was given to the licensee, a list of furníture used to be attached to the agreement. Since such a practice became wide- spread, the Rent Act was amended in 1973. Over the years experts have been advocating drastic changes in the existing rent act to improve the housing situation. 176 SectionIII~- Architect as an Expert Chapter 20- Fair Rent of calculating rent has been evolved on the basis The method fair incurs for certain landmark judgments given by courts over the last six Statutory Outgoings: AlI the expenses which a landlord of taxes, repairs, collection decades. Before going into this aspect further it would be maintaining his property such as municipal etc. which pertinent Charges, fire insurance premium, non-agricultural tax, to understand thhe meaning of certain technical terms connected with called statutory deductions. These are permitted as deductions are fair rent. proportionately from tenants as prOvided amounts can be recovered in the Rent Act and income tax rules. TechnicalTerms: on the basis The method of calculating fair rent has been evolved Cantractual Rent: lt is the rent which is agreed between the landlord over the last six of certain landmark judgments given by courts would be pertinent and the tenant for use of premises. Such a contractual rent could decades. Before going into this aspect further it with technical terms connected he exorbitant or fair depending upon the attitude of the landlord, tounderstand the meaning of certain need of the tenant and the position of supply and demand of rental fair rent. premises. by way of arrears of rent Bad Debt: lt is a debt incurred by a tenant recovered: or to recover it would involve a lot Protected Tenant: A tenant whose tenancy is secured under the Rent which cannot be easily litigation. In some cases, landlords Control Act is called the protected tenant. He cannot be evicted by the of expense and time-consuming allow a tenant to vacate the landlord unless he creates some kind of default such as non-payment are willing to forgo such dues and an outgoing in certain premises. Such a bad debt can be allowed as of rent, carrying out illegal additions, creating nuisance, etc. circumstances; but it is not allowed as a statutory outgoing. tenancy Deemed Tenant: In order to aVoid creation of apermanent expected to spend a certain system of "Leave t License. Under Repairs as an Outgoing: Every owner is some landlords resorted to the building in a proper a period of 11 months. The amount for repairs every year for keeping his this system premises were given for state of repair. It is therefore allowed as a statutory outgoing. The agreement by paying between half per cent occupier Or the licensee had to renew the permissible limit is 5% of gross annual rent or months. When this system became Whether this amount is higher "compensation" every 11 to one per cent of the cost of construction. the Rent Act in 1973 to declare immaterial as far as widespread the government amended sufficient or not or whether it is really spent is "Deemed Tenants" who could approach calculation of fair rent is concerned. OCCupiers of such premises as rent. the court for fixation of standard required to hire a Rent the Collection Charges: Every landlord is either tenant is a person who is given Collector or do the job of collecting rent himself. All tenants do not Monthly Tenant: A monthly of his occupation every month. Some pay basis. The period necessarily pay their rents on the first day of premises on month to month rent paid upon their pay need or the landlord's will. The it on the 5th day or 10th day of the month depending depends upon the tenant's prolonged occupation can required to go round a number of 5 contractual. A monthly tenant after day. Hence the Rent Collector is annual rent is 6o of the gross become a deemed tenant or protected tenant. times, For this reason a sum equal to allowed as astatutory outgoing. is the sum of taxes on properties Annual Return (GAR): Gross Annual Return Municipal Taxes: The civic administration levies taxe's include Gross during one year. its revenue. These to the landlord as one of the inmportant sources of total rent paid by all the tenants pay taxes and Beneht tax, Water Beneht Out of this gross rent, owner or landlord is required to Property tax, Conservancy tax, Sewerage Net Rate able based on the tax, Education Cess, etc. These taxes are Spend monies for repairs, insurance, etc. (ALV) which is hxed at the time left with Value (NRV) or Annual Letting Value amount which is building. (NAR): This is the taxes, of fist occupation of the Net Annual Return municlpal outgolngs such as the landlord after payíng all theinsurance prenium, sinkingg fund, ete. repairs, collection charges, fire 177  Architectural Practice in India Chapter 20-Fair Rent Ground Rent: lt is the annual rent which alessec pays to the lessor the conveyance deed and acknowledge change of ownership. for taking land on lease. Usually it is 6% of the value of land per year. Government agencics like CIDCO, MHADA etc., charge 6.5o to 70o of Necd for Fixing Fair Rent: The need for fixing fair rent by the court the value of land, per year as ground rent. arises because a tenant may agree to pay higher contractual rent in order to obtain possession of premises from the landlord. Once his Education Cess:It is acess levied by municipal and state government tenancy is secured he is inclined to apply to the court for fixation of on private propertics in order to provide funds for free primary fair rent, if he thinks that the contractual rent is exorbitant. education to children in the city. It is based on the Net Rate able Value of the property. Procedure for Fixing When a tenant makes an application to the court for fixation of fair rent, he is required to submit a report from Repairs Cess: In order to provide some funds for carrying out an expert specifying the rent which the tenant claims to be fair. structural repairs to old ruinous buildings in the island part of The court directs the landlord to file a report prepared by his expert Mumbai (excluding suburbs) government has levied a Repairs Cess justifying the rent he is charging. The court thereafter asks the parties on all tenanted residential buildings which are more than 40 years to make oral and written submissions and lead evidence in support of old. 10b of this cess is borne by the landlord while 90% is paid by the their respective cases. If the value of land is based on some relevant tenants It is based on the net ratable value of the property. and specific sale instances of comparable lands, it is not suffcient to merely give extracts from the Registrar of Assurances records. Investment in Land: When a landlord buys a property he spends Certifed true copies of conveyance or lease deeds are required to be additional sums for stamp duty and registration charges, legal authenticated by producing parties to such transactions as witnesses. expenses such as fee of solicitors, brokerage paid to broker, etc. For After going through all the documents and evidences the court fixes calculation of fair rent all these expenses together with the price the rent which is regarded as the standard rent. At times the court of land and interest on these amounts during the entire period of may fix interim rent so that the tenant may deposit the amount construction, costitute the total ivestment in land. fixed as interim rent in the court and the landlord may be allowed to withdraw the sums at fixed intervals. The amount of interim rent paid Investment in Building: When a landlord builds a building. in by the tenant is finally adjusted when the court fixes the standard addition to the total cost of construction and land development. rent. Court may appoint a commissioner [an independent expert) to he pavs professional fees of Architects and other consultants. For prepare a fair rent report, if thought necessary. calculaton of fair rent all these expenses together with interest on this amount for haif the period of construction constitute the total Fair approach to determination of Standard Rent of premises ivestment in building. For calculating interest on investment in in old and new buildings: R KGandhi, Founder Member of PEATA building onty haif the period of construction is adopted because, the in one of his technical papers on this subject has made following entire aOUnt is not spent at one time. It is spent in instalments as comments which are worth pondering over the work progresses from foundation stage to completion stage. "Artificial freezing of rents creates real problems in life. Unethical practices and generation of black money due to pugree system, rise Stamp Duty: When a person purchases any property he is required to of slum lords and mafia dons, house collapses and loss of lives, poor pay stamp duty for registering the conveyance deed in thec government tax income of local authority and innumerable cases in courts on records. This amosnt varies between 10 % to 12 % depending upon trivial issues are all the result of this unenforceable act." the type and value of property. It is either shared equally by the "Under the Rent Act, repairs and management burden is on landlords. seller and the purchaser, or alternativeBy, the purchaser pays the entire Even for payment of municipal taxes, landlord is primarily responsible. If tenants withhold rents, even then landlord has to pay stipulated amount of stamp uty s per mutual agreement. Unless appropriate stamp duty is paid, the geTnment authorities can refuse to register taxes without any return by way of interest on late payment" 178 Sectionlil-Arhectas an Expert -Following are Some of the vital factors which contribute to the Fxation of landlord, is adopted as cost of constructio, But if he ha one he contractual rent in the market for newly buildings. constructed work departmentally. 10 to 154 s added to the ameant he a 1 Situation and location of premises. spent on material and labour. The cost of constructon camed hy 2. Type of construction of building. the landlord can be compared ith the cost of similar busifngs banl 2 at the same time. Number of rooms, their sizes and arca of premises. 4. User of premises- Residential / Commercial 5. Year of first letting Expected Future Life of Building: The future life of a Class I building. built with RCC frame corstruction having either brt 6. Returns expected by landlords on investment in land building. and masonry or concrete block partitios s taken at 60 years. The sinking fund is therefore calculated for a period of 60 years In the cae 7. Paying capacity of tenants. 8. of semi-permanent building the future Iife is taken at 30 to 40 Management expenses and property taxes. years depending upon the nature of its costruction. The ife of a temporary building is considered to be aywhere between 10 and Investigations for Fair Rent Reports: An expert is required to make 20 years depending upon the nature of its costruction. The sinking exhaustive investigations before he prepares his Fair Rent Report. fund is calculated according to the respectiNE expected future ife. These include measurement of premises occupicd by the tenant: search of municipal records to ascertain the area of land, total built Fire Insurance Premium: Every wise owner is expected to insure his tip area, year of construction etc. He also takes a search of records building against the risk of damage due to fire. The annual anount of sale transactions of comparable lands which have taken place in of insurance premium depends upon the nature of construction, the relevant year (i.e. year of first occupation of building) obtains nature of occupation and the location of building. For exanple, Y copies of such relevant sale instances, make inquiries about the cost Class Iresidential building in a suburban area will have the smallest of construction of similar buildings, prevailing rates of building risk of fire. The premium in case of such a building will be about materials, labour etc. A specimen survey form for gathering relevant 0.10 % to 0.12% of 9/10 cost of construction. 1/10 is deducted information is shown in the Appendix. for foundation and plinth which is never affected by fire even in the case of total loss. The premium in the case of a temporary building is Net Return on Investment in Land: The percentage of net return on higher because of poorer construction. It could be as much as 0.254% investment in land has risen from 4.5% in 1940 to 5.5 % after 1958. of 9/ 10"h cost of construct ion. At present it is calculated @ 6.59o. Sinking Fund: Sinking fund for redemption of cost of construction Net Retum on lnvestment in Building: The percentage of net return over a period of 60 years in the case of Class lbuilding also is calculated on investment in building has risen from 5.5% in 1940 to 6.5% after on 9/10h cost of construction. Since investment in building is a long 1958. At present it is calculated @ 7.5%. tern and secured investment it is normally calculated at 4°%. In the case of semi- permanent or Class Il type of construction, it is on the Value of Land: If the land is purchased just before the construction same basis but for a period of 30 to 40 years. In the case of Class IlI is begun the value of land is adopted on the basis of purchase price. building it is calculated for a period of 10 to 20 years. For lifts and However, if it was purchased much earlier, its current market value pumps fitted in a Class I building the sinking fund is calculated on needs to be determined on the basis of sale instances of comparable full value but for a period of 25 to 30 years which is considered to be lands. the useful service span of lifts and pumps. Cost of Construction: 1f the landlord has given a contract which Special Outgoings: Apart from the statutory outgoings mentioned includes labour as well as material, the actual amount spent by the above additional outgoings such as Rent Collectors salary. Sweeper. 179  Architectural Practie in inda Chapter 20-Fair Rent in man and pump attendants salary, clectricity charges for lighting Aspecimen Fair Rent report prepared by an expert who was appointed of common spaes such as staircase landings, lighting of surrounding as Commissioner by the court is given below with a few explanatory open spaes pump and lift operation expenses are calculated as notes. A few changes in names, location of property ete. have becn special outgoings on a reasonably acceptable basis. made to maintain anonymity. Specimen Fair Rent Report Though municipal taxes form a sizable and important part of statutory Ref. No. 295/201/ R/53 outgoings these cannot be calculated as directBy as other outgoings because the taxes are based on the net annual return. What is known In the Court of Small Causes at Mumbai is the level of tanation. For example in Mumbai the aggregate tax RAN. Application No. 706/SR. of 1972. for a residential building is about 520o of the net rate able valuc or 46.80% of gross rent. The method of calculating the gross rent on ABC Industries, Applicant. the basis of level of taxation is explained in the specimen fair rent Vs. report in this chapter. Sun Products Co. Private Ltd. Respondent. Loading of Rent: When fair rent is calculated on the basis of total By an order of the Court dated July 21, 1972 1 was appointed ivestment in land and building to which all the outgoings are added. Commissioner in the above application for the purpose of reporting gross annual rent for the entire building is obtained. After dividing the what is the standard rent of the premises in application and for the gross annual rent by 12. gross monthly rent is obtained. When this is purpose of making the report, to inspect the premises and to hear divided by the total carpet area of the building on all floors, average and record such evidence as the parties lead before me. rent peT square meter per month is obtained. However all the flats or shops in a building do not have the same advantages. Therefore it The parties appearced before me through their respective advocates becomes necessary to decide the loading or apportionment of rent to and led such evidence as they thought fit. l inspected the premises on December 12, 1973. each fiat or shop depending upon size and location. In broad terms it is done as under. 1. In apurely residential building having ground and two upper At a meeting held on October 9, 1973. Shri Ajay Khale, learned floors the average rent will be applicable to flats on first floor. advocate of the applicant filed a report made by the application's Ground floor flats will have 5% less rent while second floor flats Architect Shri S. D. Vaze. which is marked as Exhibit A. He also will have 596 more rent. produced a plan of the structure prepared by the applicants Architects, which is marked as Exhibit B. Shri J M Rele the learned advocate of 2. In a building having shops on ground floor and flats on upper floors which is situated along 15 or 20 meter wide road, the the respondent tendered a report made by the respondent's Architects carpet area of shops will be calculated at one and a half times Shri C R Thakur, which is marked as Exhibit No. 1. the area of flats. In other words shopkeepers will pay one and a half times the rent a flat occupier will pay. The loading of rent At a meeting held on Nov 22, 1973 Shri Khale and Shin Rele stated for flats on upper floors will be 5% to 10% more than those on that since the parties have filed the reports of their respective the lower floors. Architects, they requested the commissioner to inspect the premises 3. In a building having shops on ground floor, offices on first floor and thereafter to make his report after taking into consideration and residential premises on upper floors which is situated along the reports of the respective Architects his own inspection of the a 25 or 30 meter wide road, the shop area may be calculated at premises. They further stated that they did not desire to lead any two and a half or three times the area of flats. The area of offices evidence besides the reports at Exhibit Aand Exhibit 1, and owing to may be taken at one and a half times the area of flats for loading the inspection of the property by the Commissioner. of fair rent. 180 Section llArchitect as an Expert Chapter 20 Far Runt At a mccting held on December 14, 1973 Shri Rele, adVOcate for the a part of the structure, nor did he apply to the Municipality for the respondent stated that the shed in application was or about 1958. It was then double the size of the constructed in reduction of the rateable value of the building. existing shed in application. It was being used by the owner for his business. For the Shri Rele, learned advocate for the respondent argued at the meeting first time it was given on leave and license basis from 1-10-1965. held on December 14, 1965 that October I, 1965 may he taken as the He further stated that the first letting may therefore he taken as date of first letting because on that day the structure which was then of October 1, 1965. He produced and showed a stampcd lcave and double the area of the existing structure in application was given license agrecment. on leave and licensc. In his argument he referred to the definition of the standard rent and specially referred to Section ll emphasizing At a mecting held on February 5, 1974, Shri Ajay Khale, learned the circumstances of the letting he argued that the letting in 1955 advocate for the applicant stated that the premises in application was was for the purpose of storage of goods, that is, Godown, while first let in 1961 to Jayant Metal Co. and he further stated that he is the letting in 1970 was for industrial purposcs, as it is being used prepared to prove it. As there was a difference between the parties as a mechanical workshop. The letting in 1971 is for occupation by as to the date of the frst letting the parties were directed to lead persons for monitory gains; lie therefore stated that the date of first evidence to show which is right. letting should be taken as March 1, 1970 and value of land and cost to construction of the building should he estimated as of March The applicant called and examined the Assistant Assessor &t Collector 1, 1970. The date on which the prenises were let to the present (Appcals) of the Mumbai Municipal Corporation. He identified a letter applicant. Ido not agree with this view. Storage of goods is also for dated March 12, 1974 and bearing Ref. No. AC/SCL570 from the monetary gain in the course of business or trade carried on by the Assistant Assessor Et Collector. LWard. Kurla recording the rateable occupier office pclisse Rent of premises occupied for trade, commerce value of the said premises from 1.6.1959 and also the revised rateable and manufacture are not agreed upon between partics by taking into value from 1-4-1962. This letter is marked as Exhibit F. He produced consideration the extent of gainfulness of occupation from different records from which contents of this letter were shown. In the cross varieties of occupation. examination he was unable to say whether these rateable values were fixed on the basis of the actual rent received or on estimated rent of Under the circumstances lhave prepared my estimate of the standard the premises occupicd by the owner. He was unable to say from the rent on the basis of the first letting as of October 1,1965. Shri Rele municipal records with him whether the premises was let or was in also argucd that the shed that was given on leave and license from the occupation of the owner during these years. 1965 to 1969 had a larger area compared to the present area, which is almost half the area of the original shed. This difference will not The Applicant examined the Ward Inspector in L Ward of the Mumbai arise as the cost of construction of a building of the size which is let Municipal Corporation. He stated from the Municipal records that the to the applicant has been estimated in arriving at the standard rent of rateable value of the premises in application was Rs. 4,320/- for the the prenmises. The cost is not taken as half of the whole shed. year 1969-70 and 1970-71. He produced the Municipal bills for the period 1.4.1965 to 30.9.1965. 1.10. 1970 to 31.3.1971 and 1.4.1971 On evidence hectored before me, I am of opinion that the first letting to 30.9.1971 which are collectively marked Exhibit K. of the structure\ front Oct. 1,1965 when it was given on leave and license basis to Shri Dave and another as stated earlier. He stated that the respondent demolished the southern half portion of the building in or about the end of 1968 or beginning of 1969, The premises in application are situate on the west side of Lal Bahadur and he further stated that Shri Dave one of the licensees, continued to he a licensee for the remaining half. He further stated that he Shastry Marg (Agra Road) in Kurla. It is assessed tinder Municipal L Ward No. 1256 (A) and bears street No. 125/A, Agra Road. This is did not notify the Municipal Corporation about the demolition of a part of land hearing plot No. 19 of Suburban Scheme No. 1. The 181 Architectural Practice in tnds Chapter 20Fair Rent Architects Architects of applicantn his report Exhibit Astates that the built-up There is widedifference in the valtue of larnd estimatcd by the purchase of a plot of land by one of my area of thc building s 1743 sq. ft. and comes to the conclusion that of the parties, Iknow of clients in the locality. It is lo the west of the property on which the the land married to the structure is 581sq. yds. On the basis of land bcaring S. shed in application is constructed. This Is a piece of land being three times the built-up area of the building. He values the land Naka to Powai. The 1and at Rs 30/- and Rs 150/- per sq. yd. respectively estimated by them. No. 27 H. No. 9 situates ona road from Saki 1966. is not far from Saki Naka. By an agreement dated October 12 The Architects to the espondent in his report Exbibit No. lestimates The purchaser agreed to purchase this land at a price of Rs 45/- per the area of land married to the structure at 701sq. yds. Hevalues the sq. yd. The land is situated in an industrial zone. lt is on a smaller road land at Rs 150/- per sq. yd. He estimates the Cost of construction which is not as wide as the road on which the building in application at Rs 49.455/- and conies to the conclusion that the reasonable is constructed. The land is. However, situated in an industrial locality rent of the premises is Rs. 1,153/- per month. Neither the Architects where a number of industries have been cstablished. Looking to this of the applicant nor the Architects of the respondent has given any instance of sale, l valuc the land at Rs 55/- per sq. yd. The Architects instances of sales of land to support the value of land at Rs. 30/- and of the respondent has calculated the arca of the land married to the Rs 150/- per sq. yd. respectively estimated by them. structure at 701 sq. yds. it is reasonable estimate of the area of land and l accept it. linspected the premises on Dec. I. 1973 when the learned advocates, representatives of the parties and Architects of the respondent were The reasonable rent of the premises comes to Rs 528/- per month as present. The respondent owns a large piece of land. I had asked for follows: a copy of the land of this large plot of land. The plan was given to (A) Investment in Land mc blitz it is not marked as exhibit. The plan is being forwarded with 701 sq. yd at Rs 55/- per sq. yd. Rs 38,555.00 this report. Stamp duty at half of i.e. 30% Rs 1,156.65 Rs 1,000.00 Legal charges The prermises in application are shown by hatched lines on the plan. Rs 40,711.65 The building is constructed on the front part of the land. lt is setback about 36 feet from the road. The building is a single storeyed steel Add interest at 50% for the Rs 1,11957 structure. Having a built-up area of 1764 sq. ft. The sides have Gl Construction period of months sheet cladding. The gables are open and have no cladding. The roof Total investment in land Rs 41,831.22 is of asbestos cement sheets fixed on steel trusses and steel purling. Say Rs 41,831.00 There is one large sliding door on the cast and one small door on the south, both made of steel framing and corrugated iron sheets. There are openings in the rear wall with expanded metal fixed in them and (B) Investment in Building without any shutters. The flooring is Indian Patent Stone. There is no Cost of Construction at Rs 15/- per Rs 26,460.00 WC. Urinal or washing place in the building. I estimate the cost of sq. ft (1764 x 1S) construction at Rs 15/- per sq. ft. Add Architect's fees at 4% Rs 1,058.40 Rs 27,518.40 The built-up area being 1764 sq. ft. The cost of construction comes to Rs 26.460/-. Both the Architects have estimated cost of construction Add interest at 6% for half period of Rs 447,17 on the basis of cubical contents. The cubical contents of the building Construction i.e. 3 months as calculated by me are 35.260 cu.ft. On my estimate of cost, the rate Total investment in building Rs 27,965.57 per cubic foot comes to Re 0.75. Rs 27,966.00 Say 182 Section l|Aecras an Expert Chapter 20 Fair Rent (C) Calculations for the Rent 1. 5.50o interest on investment in land Rs 2,300.70 (41,831 x 0.055) 2. 6.5% interest on the cost of Rs 1.818.60 Construction (27,970 x 0.065) 3. Repairs at 0.500% On 9/1oh of 4. Sinking Fund for 60 ycars investment At 30% interest 0.51% inconstruction 5. Insurance at 0.125% BETWEEN DYSTOPIA 1.1350o AND UTOPIA [O.90 x 27,070 x 0.01135) Rs 285.71 6. Rent collection, management Rs 120.00 Electricity for common lighting 7. The municipal taxes in 1965-66 were 32.750% on the Net rateable value that Rs 4,524.46 T Madkau beoeakta is 28.60% on Gross Rent. The Gross rent therefore will be as under: 4,524.46 x 100 = Rs 6336.77 per annum, or aud wides [100 28.60) Rs 528.06 per month 20. 1am of the opinion that the reasonable rent of the premises in application, As on Oct. 01 1965 is Rs 528/- per month. Dated this 17th Day of June 1976 at Mumbai 1.772 Sd/- X Y Z Commissioner Authors' Note: Day by day disputes of Fair Rent are declining. Tenants can now sell their Tenancy Rights legally. Leave &t License agreements must be registered by paying stamp duty. Rent Act is proposed to be amended so that more premises are available for renting. 18