substantial amount as advance rent
(23) Appropriate authorities not to sanction acceptance of substantial amount as advance rent if it is in violation of the concerned State’s Act.
A survey conducted has revealed that there is a fairly wide-spread practice among Government servants to accept substantial amount as "advance rent" from the prospective tenants even in cases not covered by regular agreement entered into under the provisions of the Delhi Rent Control Act or other State Rent Control Acts. In this connection, attention is invited to the provisions contained in Section 5(2) (b) and Section 5 (4) (b) of the Delhi Rent Control Act which are reproduced below :-
5 (2) (b) No person shall, in consideration of the grant renewal or continuance of a tenacy or sub-tenacy of any premise except with the previous permission of the Controller claim or receive the payment of any sum exceeding one month’s rent of such premises as rent in advance.
5(4) (b) Nothing in this section shall apply to any payment made under an agreement by any person to a landlord for the purpose of financing the construction of the whole or part of any premises on the land belonging to, or taken on lease by, the landlord, if one of the conditions of the agreement is that the landlord is to let to that person the whole or part of the premises when completed for the use of that person or any members of his family provided that such payment does not exceed the amount of agreed rent for a period of five years of the whole or part of the premises to be let to such person.
2. When a Government servant lets out the premises to a tenant, it obviously constitutes a transaction in immovable property under Rule 18 (2) of the CCS (Conduct) Rules, 1964 which inter-alia provides that no Government servant shall, except with the previous knowledge of the prescribed authority, acquire or dispose of any immovable property by lease, mortgage, purchase, sale etc. Such a Government servant is required to obtain the previous sanction of the prescribed authority of the transaction is :-
(a) With a person having official dealings with the Government servant; or
(b) otherwise than through a regular or reputed dealer.
3. The appropriate authorities should refrain from sanctioning acceptance of substantial amounts as advance rent, if this is proposed to be done in violation of the provisions of the Delhi Rent Control Act. For this purpose if necessary, the concerned authorities should ask for production of the lease agreement and examine it with a view to seeing that the conditions stipulated in Section 5 (4) (b) of the aforesaid Act or similar provisions in the State Rent Control Acts are satisfied.
4. The Ministry of Finance, etc. are, therefore, requested to bring to the notice of all persons working under them the contents of the Delhi Control Act and Rule 18 (2) of the CCS (Conduct) Rules, 1964 so that these provisions and similar other provisions in other States Acts, wherever they are applicable are strictly observed by Government servants.
[C.S. Deptt. of Personnel), OM No. 11013/18/75-Estt. (A), dated 21.02.1976]