Tenancy act draft confuses religious bodies

Religious and charitable organisations are confused about the exemption granted to them in the draft of the Model Residential Tenancy Act, 2011.

The draft exempts five groups of organisations from the act — rental units owned by central and state governments; residential units rented out by companies, universities or organisations to employees; rental units owned by religious or charitable institutions specified by state government; and residential units owned by Wakf trusts and bodies registered under the Public Trust Act.

Charity trusts are wondering whether why they have been exempted. Many religious trusts own large commercial and residential properties whose rents are capped under the Maharashtra Rent Control Act.

Experts said that the exemption clauses are vague. Utsal Karani of the Action Committee for Protection of Tenants Rights said, “It is not clear whether the trusts are exempted as tenants or landlords. It does not look as if the act is drafted by legal experts.”

Advocate SN Shroff, an expert in rent laws, said, “It is not clear whether the trusts will be protected from the new act if they themselves are tenants. “Currently, trusts are covered under the rent control acts. So if individual landlords are going to get the benefit of an increase in rent, there is no reason why religious bodies should not get the benefit,” he said.