504. Is there a fast way for NRI to

evict tenant in India . . .

Question: Dear Sir/ Madam, I have rented my Apartment in May 2012( 15th May) by making a Rental contract of 11 months & to be renewed on mutual agreement to a period of 3 years. I was given a security deposit of 10 months rent as per the law . Now my house is rented for almost 8 months & I have received rental for 3&1/2 months only & my rental is due on the tenant for 4&1/2 months which remains unpaid. He neither answers his phone calls made by me nor replies to any mails what so ever. I sent my brother in law 2 months back who met him & he gave a note in writing that he shall clear the dues in 2 weeks time which he never did & it was not possible to contact him as he does not answer any channels of contact. I have clearly mentioned in the contract that if he defaults of 2 months continuous rental he should voluntarily vacate the premises, or should vacate on a months notice. I had to engage a lawyer who gave him a months notice to vacate the premises as he had defaulted & breached the terms of the contract & now it is 2 weeks & I am awaiting 2 weeks more to file a suit against him as I am not left with any option but to get his eviction through the court. Now my Questions are: 1. Is is not easy to get my Apartment vacated in this regard of non payment of Rental & staying for free. 2. After the lawyers notice is there no method to get the tenant vacate the premises without going to courts. 3. If no alternative then shall go through the courts, how easy would it be to get the eviction orders & how long the case will take to get him removed from my property as per the Indian law. 4. As I am a non resident of India I do not have much time & patience to deal with this problem as I am retiring in the near future & may go & settle in my country in my house as such need the vacant possession as well. 5. Could you suggest a easy or Fast track on the issue. Shall be obliged for your reply & help in the matter. Thanks & Regards, Dr Ashok Karamchandani Answer: Whether you can remove your tenant and when! depends on the type of agreement you signed when you rented out your property in India. You mention in your email that the tenant had given a security deposit of ten months rent as per law. There is no law that I am aware of the specifies how much deposit should be given. Some times a large deposit may cloud a landlords judgment in accessing a potential tenant. When any property is rented out by way of a license, the agreement is known as a ‘leave and license agreement’. These agreements can be terminated according to the terms of the agreement and offer a higher form of protection to landlords, against tenants. In case of eviction, generally rent control laws do not apply to leave and license agreements. Eviction, under leave and license is governed by the Easements Act. Where a license period has expired, immediate eviction of the tenant may be sought. Tenants, occupying a property under a leave and license agreement, can be evicted by the authorities when their license expires. From your email I assume you signed a rental lease and not a leave & license agreement. These days rental agreements cause problems for many landlords and getting tenants evicted can be a costly, prolonged and tiresome process. Regarding your questions, I have some comments: 1. It is not easy to get your apartment vacated for non payment. (A better reason for eviction may be that you need the place for your own residence.) 2. Some times tenants want their landlords to give them a lawyers notice! now they can prolong the case for a long time. Courts in India are slow . . . very slow and civil cases can take years to settle. A better option in such cases, in my personal opinion is to come to a settlement with the tenant to vacate! This may involve losing some rent, perhaps paying for a move of the tenant or helping with a deposit the tenant needs to make to get a new rental place. NRIs may find such suggestions strange, but this is the easier route and believe it or not, the cheaper route. NRIs involved in lawsuits in India will find that it is not easy to fight court cases in Indian courts from abroad. Lawyers perhaps may give you a positive opinion of going to court as this is their source of income. They may paint a rosy picture and say they will get eviction soon, but this hardly happens and the costs keep rising along with frustration on which one cannot place a value! 3. Indian law is as good as the law of most civilized countries. There is no doubt you will eventually win. However the only problem is that Indian court process is very slow and can sometimes take years! several years. A crooked tenant can use this to keep the court process going for many years. NRIs renting out property in India NRIs contemplating letting out their properties in India should ensure that: They take the leave and license route and stay away from rental agreements. Eviction, if it ever becomes necessary is much easier and faster in case of leave and license. Not use the word ‘rent’ when drafting out leave & license agreements. Make sure that leave and license agreement is duly registered. Unless a leave and license agreement is registered, the courts will not offer any help. Know and verify who you are renting your property out to. Don’t let a higher rent persuade you to rent to the first person, be selective! These days there are laws that require landlords to register with the local police information on who they are renting their property to. Ensure that this rule is followed.