Rent control act for Islamabad

Published November 9, 2010

THE Rent Control Bill for Islamabad has now been tabled in the National Assembly to further amend the so-called and ineffective Islamabad Rent Restriction Ordinance 2001.

If passed and made an act of Parliament, it would hopefully address the longstanding grievances of both landlords and tenants in the capital city.

However, the Statement of Objects and Reasons accompanying the bill says, besides other things, there shall be a mediation council headed by the president of Islamabad Chamber of Commerce and Industry or his nominee as its convener and a representative each of the tenant and the landlord as members. It also suggests a mechanism of automatic annual increase of rent by 10 per cent.

The bill gives an impression as if it is only aimed at resolving the disputes between shopkeepers and the shop owners. There seemed to be no mention of resolution of disputes between owners of residential accommodations and tenants who are forced to increase rent.

Failing to do so, they are destined to keep on shifting every year or two with their bag and baggage from one place to the other or from one sector to the other.

Moreover, the annual increase of 10 per cent could be justifiable for shops and other commercial buildings. The same should not be made applicable to tenants of houses and other residential accommodations as they are mostly employed in government service or the corporate sector. A lower percentage should be prescribed for residential accommodations.

It would be surprising to learn that most people doing business in Islamabad reside in the adjacent city of Rawalpindi as they are unable to afford the ever increasing rent of houses in the city where they do their business.

No government in the past had an explanation as to why the capital city was denied the rent control/restriction act.

It was a general perception that the powerful land and property mafia with physical presence or/and links in every parliament had been the stumbling bloc in the way of an act to this effect.

EHTESHAM SIDDIQUI
Islamabad

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