Mumbai: The BMC has put a stay on hiking the rents for tenants living in civic-owned buildings till March 31, 2023. The decision has given a sigh of relief to 46,000 tenants residing in 3,505 BMC-owned buildings, largely in South Mumbai.
Large tracts of land and buildings came under BMC after the erstwhile Bombay Improvement Trust was dissolved into BMC in 1925. Some were abandoned properties while some were specifically constructed for affordable housing. The civic body then rented out several properties at minimal rent.
Last hike by BMC was in 2014
The BMC first increased the rent in 1955, then in 1998 and then in 2014. However, despite being hiked three times the rent from residential tenants was around Rs 100 per month till 2021.
During the Covid-19 period, the rent was increased to Rs 3 per sqft. So the tenants had to pay Rs 700-800 per month. The rent increased every year by 5% per sq ft, said a civic circular first issued in May 2021. It also stated that in case a tenant wants to sell the property, he would need the no-objection certificate of the landowner (BMC) and pay a certain share of the transaction to the civic body as well. But the hike was opposed by tenants and the Congress party.
Ravi Raja, the former Opposition leader of the BMC, said, “The sudden hike was unjust to residents who fall in the low-income group bracket. It is good that BMC has finally realised and put a stay order to the BMC circular. But we want the civic body to cancel the order.”
Uttam Yadav, a tenant from a civic-owned building said, “The BMC was charging us Rs100 till last year. We don’t oppose increasing the rent, but it was suddenly increased to Rs800. We are grateful that civic body has put a stay on the hike.”
