Section 6 of Delhi Rent Control Act 1958 - Standard Rent
Section 6 of the Delhi Rent Control Act, 1958 lays down the statutory method for determining "standard rent" for premises to which the Act applies. The calculation differs according to whether the premises are residential or non-residential, the date on which they were let or constructed, and whether rent had previously been fixed under earlier Delhi rent control legislation.
How Section 6 determines standard rent
For residential premises, Section 6 distinguishes premises let before 2 June 1944 from those let on or after that date. In specified cases it uses the basic rent or rent previously fixed under the earlier rent control enactments. In other cases, the provision uses a statutory percentage of the aggregate of the actual cost of construction and the market price of the land at the commencement of construction.
For non-residential premises, the provision follows a similar structure but applies the percentages stated in the section for the relevant category. Sub-section (2) contains special rules based on the date of construction and, for certain premises, the rent at which they were let.
Text of Section 6 - Standard rent
(1) Subject to the provisions of sub-section (2), "standard rent", in relation to any premises means--
(A) in the case of residential premises--
(1) where such premises have been let out at any time before the 2nd day of June, 1944,--
(a) if the basic rent of such premises per annum does not exceed six hundred rupees, the basic rent; or
(b) if the basic rent of such premises per annum exceeds six hundred rupees, the basic rent together with ten per cent. of such basic rent;
(2) where such premises have been let out at any time on or after the 2nd day of June, 1944,--
(a) in any case where the rent of such premises has been fixed under the Delhi and Ajmer-Merwara Rent Control Act, 1947 (19 of 1947), or the Delhi and Ajmer Rent Control Act, 1952 (38 of 1952),--
(i) if such rent per annum does not exceed twelve hundred rupees, the rent so fixed; or
(ii) if such rent per annum exceeds twelve hundred rupees, the rent so fixed together with ten per cent. of such rent;
(b) in any other case, the rent calculated on the basis of ten per cent. per annum of the aggregate amount of the actual cost of construction and the market price of the land comprised in the premises on the date of the commencement of the construction;
(B) in the case of premises other than residential premises--
(1) where the premises have been let out at any time before the 2nd day of June, 1944, the basic rent of such premises together with ten per cent. of such basic rent:
Provided that where the rent so calculated exceeds twelve hundred rupees per annum, this clause shall have effect as if for the words ten per cent., the words fifteen per cent. had been substituted;
(2) where the premises have been let out at any time on or after the 2nd day of June, 1944,--
(a) in any case where the rent of such premises has been fixed under the Delhi and Ajmer-Merwara Rent Control Act, 1947 (19 of 1947) or the Delhi and Ajmer Rent Control Act, 1952 (38 of 1952),--
(i) if such rent per annum does not exceed twelve hundred rupees, the rent so fixed; or
(ii) if such rent per annum exceeds twelve hundred rupees, the rent so fixed together with fifteen per cent. of such rent;
(b) in any other case, the rent calculated on the basis of ten per cent. per annum of the aggregate amount of the actual cost of construction and the market price of the land comprised in the premises on the date of the commencement of the construction.
(2) Notwithstanding anything contained in sub-section (1),--
(a) in the case of any premises, whether residential or not, constructed on or after the 2nd day of June, 1951, but before the 9th day of June, 1955, the annual rent calculated with reference to the rent at which the premises were let for the month of March, 1958, or, if they were not so let, with reference to the rent at which they were last let out, shall be deemed to be the standard rent for a period of seven years from the date of the completion of the construction of such premises;
(b) in the case of any premises, whether residential or not, constructed on or after the 9th day of June, 1955, including premises constructed after the commencement of this Act but before the commencement of the Delhi Rent Control (Amendment) Act, 1988, the annual rent calculated with reference to the rent agreed upon between the landlord and the tenant when such premises were first let out shall be deemed to be the standard rent for a period of five years from the date of such letting out.
(c) in the case of any premises, whether residential or not, constructed on or after the commencement of the Delhi Rent Control (Amendment) Act, 1988 and to which the provisions of this Act are made applicable by virtue of clause (d) of section 3, the rent calculated on the basis of ten per cent. per annum of the aggregate amount of the actual cost of construction of the premises and the market price of the land comprised in the premises on the date of commencement of the construction of the premises shall be deemed to be the standard rent.
(3) For the purposes of this section, residential premises include premises let out for the purposes of a public hospital, an educational institution, a public library, reading room or an orphanage.
1988 amendments reflected in Section 6
The Delhi Rent Control (Amendment) Act, 1988 (Act 57 of 1988), with effect from 1 December 1988, substituted "ten per cent." for the earlier "seven and one-half per cent." formula in the relevant clauses, substituted "actual" for "reasonable" cost, omitted specified provisos, and inserted clause (c) of sub-section (2).
Related provisions
Section 6A provides for revision of rent, while Section 7 deals with lawful increases of standard rent in certain cases and recovery of other charges. Section 8 addresses notice of increase of rent, and Section 9 provides for fixation of standard rent by the Controller.
For the current official statutory text, see Delhi Rent Control Act, 1958 on India Code.