(1) The revision of rent between the landlord and the tenant shall be in accordance with the terms of the tenancy agreement.
(2) Where, after the commencement of tenancy, the landlord has entered into an agreement in writing with the tenant prior to the commencement of the work and has incurred expenditure for carrying out improvement, addition or structural alteration in the premises occupied by the tenant, which does not include repairs necessary to be carried out under section 15, the landlord may increase the rent of the premises by an amount as agreed to between the landlord and the tenant, and such increase in rent shall become effective from one month after the completion of such work.
(3) Subject to any agreement in writing, where the premises have been let out before the commencement of this Act, the rent thereof shall be liable to be revised for a further period of two years from the commencement of this Act, according to the formula indicated below:-
(a) where the premises have been let out prior to 15-07-1972, it shall be deemed to have been let out on 15-07-1972;
(b) where the premises have been let out on or after 15-07-1972, the date for revision of rent shall be one year after the date of commencement of tenancy.
The rate of rent payable in above cases shall be liable to be increased at the rate of 5 % per annum in case of residential accommodation and 7% per annum in case of non- residential premises, and the rate of increase of rent shall be compounded on an yearly basis. The amount of rent so arrived at shall again be liable to be increased at the aforesaid rates per annum in similar manner up to the commencement of this Act.
Notwithstanding anything mentioned above, if rent of premises had been revised during continuance of tenancy after 15-07-1972, the formula of revision of rent mentioned above shall be applicable from the date of such revision of rent:
Provided that notwithstanding anything mentioned above , the revised rent payable as per formula indicated in aforesaid provision, shall be payable as below from the date of commencement of this Act:-
(i) in the first year, half of the rent so computed; and
(ii) in the second year, full amount of rent so computed.
(4) Notwithstanding anything contained in sub-section (1) of section 3 wherein any premises referred to, has been let out to a tenant, the landlord of such premises shall also be entitled for revision of rent in accordance with provisions of clause (3)and the relevant provisions of this Act shall apply to such cases.
(5) In the case of tenancy entered into before the commencement of this Act the landlord shall, by notice in writing to the tenant, demand the enhanced the rate of rent as specified under sub-section (3) and the rate of rent so enhanced shall be payable within 30 days of the service of notice. In such event the tenancy agreement shall be deemed to be amended and enhanced rate of rent shall be the rent payable under section 8:
Provided that if there was no tenancy agreement before the commencement of this Act, the landlord and the tenant may mutually agree to execute tenancy agreement for enhanced rate of rent failing which the rent authority shall determine the enhanced rent subject to the provisions of section 10.
(6) No arrears of aforesaid enhanced rent shall be payable or recoverable for the period prior to commencement of this Act.