Increase in Lease Rent with retrospective from april 2021

Dear Client,
The Maharashtra Housing and Area Development Authority (MHADA) has proposed to link the ready reckoner rates with the lease rents. The proposal was shared by MAHADA in the month of February 2023 based on the resolutions passed by MAHADA boards. The proposal also includes revising lease rents every five years. Also, the renewal of leases must be done in proportion from 30 years to 90 years. The annual lease rent for areas outside Greater Mumbai for individual residential plots and housing society plots will increase by 1%. However, the area for these plots must range between 25 square meters to 50 square meters. The annual lease rent for these areas will be calculated at 25% of ready reckoner rates during renewals. Also, for areas that are above 50 square meters, the annual lease rent will increase by 2.5%. The lease rents for commercial establishments will increase by 5%. The annual lease rent will also increase by 0.5% for the socio-cultural, religious, and educational organizations. So, if the decision or action of the MHADA appears to be arbitrary and unjustified, the aggrieved and affected tenants can file a writ petition or a public interest litigation(PIL) petition before the concerned High Court under Article 226 of the Constitution of India seeking appropriate reliefs in the matter. However, be informed that last year, the Hon'be Bombay high court, deciding a decade-long battle between Maharashtra Govt. and a bunch of petitioners over increase of lease rent on government land and renewal, upheld fixation of new rent as “reasonable, not exorbitant”, but struck down the state’s intention to renew the lease rent with 5% increase every five years, saying such a term never existed in the earlier lease deeds. Hence, it is recommended to consult with an experienced Sr. Advocate of High Court to understand your rights and remedies to navigate the issue effectively.