• Renewal of Lease, WAQF Properties lease rule Amendment Rule, 2020

I am a tenant since 1989 of a commercial property owned by the Rajasthan WAQF board. The property is located in Jodhpur. The mutawalli has served a notice to me for increasing existing rent from Rs. 7,700 per month to Rs. 50,000 per month. The basis of increase in annual rent as given by the mutawalli is 10% of market value of the property as against the reserve price of 2.5% as mentioned in the section 7 of WAQF properties lease rule amendment rule 2020. My question is how should the lease rent be determined?
Under section 18 and 7 of the said rules. The rent fixed at the start of my tenancy was Rs. 2,000 per month. I am regularly paying the increased rent @5% per year or more as agreed between us since 1989.
Asked 4 years ago in Property Law
Religion: Hindu

11 answers received in 1 day.

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14 Answers

You have to follow lease agreement clauses entered into between you and Waqf Board. 

If you are not convinced by the demand of Mutawalli then file application before The State Waqf Board Tribunal for the relief. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Have to file suit in court to challege the demand notice. Maximum rent can increase as per the act. No authority to mutawali to increase rent contrary to the provisions of act.

Yogendra Singh Rajawat
Advocate, Jaipur
22987 Answers
31 Consultations

the mutawali or Board, as the case may be, shall in all cases where lease of waqf property is required to be given for a period of more than one year but not exceeding thirty years, publish the invitation of bids in at least one leading national (Hindi, Urdu or English) newspaper and one regional or local newspaper containing the following details, namely :-

(i) exact area or description and location of the waqf property;

(ii) the purpose or object for which the property is required to be leased;

(iii) the period for which the property is required to be leased;

(iv) the minimum reserve price per square feet:

Provided that no such advertisement in newspaper shall be required for lease of waqf property whose lease rental income is up to Rs. 3000/- (Rupees Three Thousand) per month as on 3rd June 2014 and the mutawalli or Board shall invite applications from persons desiring to take the property on lease and execute the lease by following the procedure specified in sub-rules (2) and (3) of rule 4:

2) Competitive bids shall be invited in all cases in which the rental income from the leased property in which the assessed rental income from the leased property is more than Rs. 3000/- (Rupees Three Thousand) per month as on 3rd June, 2014 and the waqf property shall be leased out to the highest bidder:

 

3)

The reserve price per square feet for lease of an immovable waqf property shall –

 

(b) for commercial activities, be not less than 2.5% per annum;

of the market value of the property:

Ajay Sethi
Advocate, Mumbai
96763 Answers
7804 Consultations

Refer the the last agreement executed between you and the Mutawali. if the said agreement mentions the time limit for increase of the rent then both of you are bound by it.

Unless and until the last agreement has come to an end the Waqf can not ask for increase on new Rules of Regulations.

Since Rent Act differs in every state it is advisable to take advice from local advocate., 

Devajyoti Barman
Advocate, Kolkata
23192 Answers
510 Consultations

No, its never said in the rule 7 that the amount will be 2.5% of market value. It tells that Bid price should not be less than 2.5% of market value. Maximum it may be anything who ever give highest bidding amount. So ask them to get bidder for lease amount accordingly to that you are going to pay. They can't decided lease amount per month. Get bidder and according to that you can bid the highest amount of the lease property.

 

18. Renewal of lease. -

 

(1) No lease agreement shall contain a clause providing for automatic renewal.

 

(2) The Board shall, while renewing the lease, give preference to the present lessee if such lessee participates in the bid and matches the highest bid 

Ganesh Kadam
Advocate, Pune
12987 Answers
262 Consultations

Increased rent have to be paid

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

Dear Sir/Madam,

You are suggested to raise the objections regarding such unexpected increase of rent. First serve the legal notice and later you may file the case. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

- As per rule.11 of the Waqf Properties Lease Rules,every lease agreement shall contain a clause to the effect that there shall be an increase of lease rent every year by an amount of not less than 5% on the existing lease rent.

- Hence, annual rent cannot be increased by 10 % of market value. 

- Further, in case of bids , for commercial properties , the reserve price should not be less than 2.5 percent annual per square feet.

Mohammed Shahzad
Advocate, Delhi
14417 Answers
221 Consultations

It will be determined as per the amended rule but it's discretion to make alterations in that 10 percent

Prashant Nayak
Advocate, Mumbai
32366 Answers
199 Consultations

No lease agreement shall contain a clause providing for automatic renewal. 

The reserve price per square feet for lease of an immovable waqf property 

shall -
(a) for hospitals, educational institutions and social sectors, be not less than 1% per annum;
(b) for commercial activities, be not less than 2.5% per annum;
of the market value of the property:
Provided that the Board may in cases where the bid fails twice and on the recommendation of a
Committee to be formed for the purpose, reduce the reserve price for a locality, if the same is approved by two-
thirds members of the board present and voting.
Provided further that the reserve price upon such reduction shall in no case be lower than 1.5% of the
market value.
(2) The market value referred to in sub-rule (1) shall be the price fixed for registering a conveyance at
the office of the Registrar or Sub-registrar

Mohammed Mujeeb
Advocate, Hyderabad
19306 Answers
32 Consultations

The law has ti be followed. They cannot increase the rent arbitrarily.

File a case against the waqf.

Rahul Mishra
Advocate, Lucknow
14107 Answers
65 Consultations

No the landlord cannot do this unilaterally.

Swarupananda Neogi
Advocate, Kolkata
2973 Answers
6 Consultations

You issue a reply notice denying or refusing to pay the exorbitant rental amount charged by the mutawali and can file an injunction suit to restrain the mutawalai from charging the exorbitant interest by citing some flimsy law or rules. and can even apply for fixing a fair rent as per market value  as per the procedures of law.

T Kalaiselvan
Advocate, Vellore
86958 Answers
2334 Consultations

  1. As per the information mentioned in the present query, makes it clear that you have been continuously paying the rent with an increased rate as per law.
  2. I would like to apprise you that there cannot be a rule amended with an intention to supersede an existing rule of law.
  3. It cannot be done that a new rule will get the preamble of any act to set aside.
  4. As per law of any state act and in accordance with the principle of natural justice of our Constitution, you cannot be asked to have this much of rent.
  5. You have an option to approach the court of law for getting injunction against this much increased rent and also to continue to pay as per the rule of natural justice.

Sanjay Baniwal
Advocate, South Delhi
5474 Answers
13 Consultations

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