The Union Cabinet on 11 July 2013 gave in-principle approval to withdraw the controversial Rent Act of 1958 and to replace it with a new law under which rent in New Delhi will be linked to inflation.
The Rent Act of 1958 was required to be replaced by legislation in 1995 but that was not notified even after enactment because of the huge controversy with tenants as they went angry over it.
The Act of 1995 was to replace the ancient law of 1958 that protected the migrant population from uninformed rent hikes by landlords.
It has been seen that the law, while giving protection to the tenants who pay trivial rent, was seen as serving as a mechanism for harassment of landlords who became helpless and could not increase rent despite enormous inflation.
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