NRI can
ask his tenant to immediately vacate his property
New Delhi, Oct. 24, 2007
Ram Suri/ Gary Singh, LA
According to 2005 ruling by the Supreme Court of
India, NRI landlord could ask his tenant to immediately vacate
the premises even though he did not intend to use it directly
for himself and resides permanently in another country.
The Court said to eject a tenant, an NRI landlord
was required to prove his NRI status and the fact that he had
made the claim for the premises for his use or for the use of
any dependent ordinarily living with him.
Justice K G Balakrishnan and Justice P P Naolekar
said, "An NRI can claim ejectment of the tenant from the
premises for the purposes of any other person who is dependent
on him and is ordinarily living with him which makes it clear
that although the NRI resides permanently in another country,
he could get the accommodation vacated for the need of his dependent,
who ordinarily lives with him and intends to come to India.\
"There is no requirement that he (NRI) has permanently settled
in India on his return or he has returned to India with an intention
to permanently settle. An NRI may require the accommodation for
expansion of his business which he is carrying in another country
or requires it for temporary stay," the Bench said disposing
of a bunch of petitions on the issue.
The East Punjab Urban Rent Restriction Act, 1949, is the law
that governs landlords and tenants; it deals with disputes regarding
increase in rent and vacation of premises and applies within urban
areas. The judicial officer presiding over this tribunal is known
as the Rent Controller; at present Chandigarh has three Rent Controllers.
Judgements of the Rent Controller may be appealed before a District
Judge or Additional District Judge.
In 2001, the Punjab government amended the Punjab Security and
Land Revenue Act, 1953, under which NRIs can now get back possession
of their agricultural land from tenants or illegal occupants.
Similarly, to protect NRI's residential and commercial properly,
the Punjab Rent Restriction Act, 1949, has also been amended.
The NRI had to prove that he was the owner of the property for
five years, the Bench said interpreting section 13B of the East
Punjab Urban Rent Restriction Act, which creates a special class
of NRI landlords and reposes special right to them to recover
immediate possession of their leased premises.
If you had made a payment of Rs (X) lakh to a tenant for vacating
the property, it is deductible from gains arising from the sale
of property. In this connection your kind attention is invited
to a decision of Madras High Court as quoted in 137 ITR 846.