At a meeting organised by a proposed tenants' society called Confederation of Tenant Associations Mumbai South held earlier this week, the Minister while addressing the tenants, stated that the new Rent Act would be a permanent one and was ``in the interest of tenants of old buildings''.

However, in continuation with the amendment made in the Bombay Rent Act in 1987, buildings which have been constructed after 1987 ``will not come under the purview of the proposed Rent Act'' and the tenants will ``not be protected.''

Purohit claimed, the government's policy is to protect tenants of old buildings irrespective of the flat's size. He said a tenant of old building reconstructed with an NOC from the RepairAnd Reconstruction Board will be protected. Anil Goenka, Federation of Old Buildings Co-op Housing Society chairman, pointed out that unless the State fixes the percentage of the pugree amount which goes to a landlord in case of transfer of tenancy, the old tenant would be left with nothing as he is liable to pay a 20 per cent capital gains tax on it along with stamp duty. The minister, who obviously had not considered this point, promised to do something about it. The current informal rule of pugree when transfer takes place is a 70-30 ratio where 30 per cent goes to the landlord if the new tenant wants to have the rent receipt transferred in his name. Meanwhile, the main question remains whether one would become a new tenant by paying in white money and still be uncertain of getting the money back if he decides to surrender his tenancy. Purohit agreed that such a case is likely.