NOC from the building owner should be made mandatory for Renewal of trad license
First of all let me share my views.The Municipal corporations must consult the owner of the building, to renew the trade licence of the Tenant occupying the premises.If the tenant is in arrears of rent of more than 3 months, his trade license should not be renewed and to be cancelled. They should insist on NOC from the building owner, to be submitted alongwith the application for renewal. In this manner, the owner will be able to get the rent on time and pay the taxes without fail.After all it is vicious circle, Taxes are collected from the tenant and then the owner pays it to the Municipal corporation.If the chain breaks then there will be less fund avialability for developmental aspects.. Even the rate of tax should be based on the actual rent collected rather than on the periodically enhanced rate of tax more
Ramadas Shet ji,
More the requirements more is the possibility of the corruption.
Rent keeps increasing continuously.
Most of the landlords don't enter into agreements and even don't give rent receipts.
Insistence for NOC for renewal of Trade Licence shall put Traders under threat of discontinuation if consideration amount is not shelved out to Corporations and also even to the Landlords not maintaining the premises in the fair tenantable conditions.
Hope you will realise a view may sound good but its application may lead to numerous implications having adverse effect. One can not think of one side only.
I do not think there will be corruption, if municipality insists on N. O. C, from owner to be submitted alongwith application for T. L renewal, bcos the landlord also will have to send a letter giving all details of tenant having valid agreement, requesting municipality not to renew the trade licence if tenant is in arrears of rent. As far as landlords maintaining the premises in good condition, it remains on how much fair market rent he derives from the premises. If the tenant is not inclined to give a fair market rent and continues, it tentamounts to his agreeing for the given condition of the premises.
Insisyance of N. O. C will pave the way for better relation and understanding between landlord and tenant, and municipality will help the landlord and tenant to avoid court litigation more
Does the Municipality authorities are having that much of time to consult the owner of the building more
It is not the question of their not having time to consult the owner. They need not consult the owner. Just make it mandatory to enclose the N. O. C alongwith the application for trade licence renewal by the tenant. By this way, Landlord-tenant relationship will not sour,. Also, the landlord/legal heir has to send a letter to municipality, only if there are arrears, as a caution to avoid submission of fake N. O. C by tenant more
No need of NOC because if the tenant had an arrears of rent (DUE) - Then the owner will not give the Tax Paid Receipt, so the tenant can't apply for renewal of License. more
Even the tax paid receipts for three months prior to date of application for Trade licence renewal. But, in Municipality bye laws,there is a clause that they can collect the tax for premises from the occupier, if the owner refuses to pay for non receipt of rent. So a tenant will pay the taxes that is 15% of annual rent and remains willful defaulter of rent for years, even after a suit for eviction is filed and if the landlord wins the case, he will get ONLY three years' arrears of rent. If municipality insists on N. O. C from owner and if tenant fails to get one for his wilful defaults, he will not get renewed trade licence and if he continues to do business, Municipality can Seal the premises and indirectly Municipality is assisting the landlord to get all arrears more
On Mon, 08 Jul 2019 10:20:05 +0530 RAMADAS SHET wrote
When some one gives his/her property on rent, itis obvious that it is done for economic advantage. The landlord and the tenants should follow their agreement in letter and spirit which should be for a certain minimum period. more