[See Sections 6 and 7]
The rent enhanceable under clause (a) of sub-section (1) of section 6 or sub-section (1) of section 7, as the case may be, shall be calculated at the rates shown in column (2) of Table I given below, compounding on yearly basis, with reference to the date of agreement in the case of rent agreed to between the landlord and the tenant, and the date of commencement of construction in the case of standard rent, to arrive at the rent payable for the period for which rent is to be determined: Provided that the total amount of enhancement as so calculated till the commencement of this Act shall be restricted in respect of a premises on the basis of its size as indicated in column (1) of Table II to' such percentage as is specified in the corresponding entry in column (2) of the said Table: Provided further that the enhancement in the case of a tenancy entered into before the commencement of this Act shall be effected gradually in five equal yearly instalments.
Explanation.-The base for calculation of annual enhancement of rent after the commencement of this Act shall be the rent payable in a year as if the total enhancement of rent due at the commencement of this Act came into effect immediately rather than gradually over a five year period, and such annual enhancement of rent shall be payable in addition to the graduated enhancement: Provided also that in relation to a landlord, referred to in section 26, who is a widow, a handicapped person or a person of the age of sixty-five years or more, the enhancement of rent shall not be spread over a period of five years but shall come into force with immediate effect.
|Date of agreement/commencement of construction||Rate of enhancement of rent|
|1. Up to 31st December, 1949...||Two per cent.|
|2. On and from 1st January, 1950 to 31st December, 1960..||Four per cent.|
|3. On and from 1st January, 1961 to 31st December, 1970..||Six per cent.|
|4. On and from 1st January, 1971 to 31st December, 1994..||(i) Eight per cent. for residential premises;
(ii) ten per cent. for non-residential premises.
|5. On and from 1st January, 1995 onwards.....||Seventy-five per cent. of annual inflation rate based on Whole sale Price Index in the case of residential premises and hundred per cent. of such rate in the case of non-residential premises.|
|Size of premises (built-up area)||Permitted enhancement of rent|
|1. Residential premises of 25 square metres or less.....||Twenty-five per cent.|
|2. Residential premises of more than 25 square metres but 40 square metres or less.....||Fifty per cent.|
|3. Residential premises of more than 40 square metres but 80 square metres or less...||Seventy-five per cent.|
|4. Residential premises of more than 80 square metres.....||Hundred per cent.|
|5. Non-residential premises . . . . . . . (irrespective of size)||Hundred per cent.|