Section 47: Leases of Vacant Premises to Government

Scope: Section 47(1)

Section 47 is confined to premises situated in areas that formed part of the New Delhi Municipal Committee immediately before 7 April 1958, where the premises are let or intended to be let for residential use.

Vacancy notice: Section 47(2)(a)

When covered premises with a standard rent of at least Rs. 2,400 per year become vacant, whether through the landlord ceasing occupation, termination of tenancy, eviction, release from requisition or otherwise, the landlord must notify the Director of Estates in writing within seven days.

Government notice: Section 47(2)(b)

The Director of Estates may, whether or not the landlord has notified the vacancy, serve a notice stating the period for which the Government requires the premises and directing the landlord and persons claiming under the landlord to deliver possession to the specified officer or person. If the landlord has properly given notice of vacancy, the Director of Estates must issue any such notice no later than seven days after receiving the intimation.

Exceptions under the second proviso

The vacancy-notice and Government-takeover mechanism in subsection (2) does not apply to premises recovered by the landlord under Section 14(1), proviso (e), on the ground of bona fide requirement, or premises released from requisition for the landlord's own use and occupation.

Deemed lease: Section 47(3)

On service of the Government notice, the premises are deemed leased to the Government for the period specified. If vacancy intimation was given, the deemed lease runs from delivery of that intimation; otherwise, from delivery of possession under the notice. Other lease terms are agreed between Government and landlord or, absent agreement, determined by the Controller under the Act.

Payment when not taken: Section 47(4)

Where the landlord has duly intimated vacancy but the Government does not take the premises on lease, the Government must pay the landlord an amount equal to one fifty-second of the annual standard rent.

Permitted Government uses: Section 47(5)

Premises leased under this section may be used as the Government considers appropriate, including use by public institutions, foreign diplomatic or trade missions, and residences of Government or specified foreign mission officers.

Meaning of important legal terms

Standard rent: The rent determined or determinable under the Act, including the provisions governing standard rent in Sections 6 to 9, rather than necessarily the amount currently paid by a tenant.

Controller: The statutory authority appointed under Section 35 to exercise functions under the Act, including determining lease terms under Section 47(3) where the parties do not agree.

Bona fide requirement: The landlord's genuine requirement of premises for occupation as contemplated by the proviso to Section 14(1)(e), subject to its statutory conditions.

How Section 47 operates in practice

The landlord should first check the property's historical municipal location, residential character and standard rent. Where Section 47(2) applies, a written vacancy intimation should be sent to the Director of Estates within seven days and proof of delivery retained. If a Government notice is served, the lease period and statutory commencement date follow Section 47(3). Where timely intimation was provided but the Government does not lease the property, Section 47(4) provides for the specified payment.

The annual threshold of Rs. 2,400 is the figure stated in the legislation, not an estimate of prevailing market rent. Section 47 should also be read with the Act's general applicability and exemption provisions, including Section 3.

Legislative note and official references

The expression Director of Estates replaced Estate Officer to the Government of India through the Repealing and Amending Act, 1960 (Act 58 of 1960), Section 3 and Second Schedule, with effect from 26 December 1960.

For the full statutory wording, including all five subsections and provisos, consult the Delhi Rent Control Act, 1958 on India Code or the Ministry of Housing and Urban Affairs publication. The Delhi Rent Control Act index provides access to related sections.