In Brief
Tenants challenged a rent increase for their shop during an ongoing 20-year lease contracted for 1990-2010. The landlord, who purchased the property in 2008, applied to increase rent from Rs.1,840 to Rs.23,400 monthly. The Rent Controller fixed fair rent at Rs.23,400 (Rs.60/sq.ft). The tenants argued the landlord cannot seek rent enhancement during the subsistence of a contractual tenancy. The Supreme Court dismissed the appeal, holding that Section 4 of the Telangana Rent Control Act permits both landlord and tenant to apply for fair rent fixation at any time, even during currency of contractual rent. The statute protects both parties equally."
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