Section 18 in The Bombay Rents, Hotel and Lodging House Rates Control Act, 1947
18. Unlawful charges by landlord.
(1)If any landlord either himself or through any person acting or purporting to act on his behalf or if any person acting or purporting to act on behalf of the landlord receives any fine, premium or other like sum or deposit or any consideration other than the standard rent or the permitted increases, in respect, of the grant, renewal or continuance of a lease of any premises, or for giving his consent to the transfer of a lease by sub-lease or otherwise, such landlord or person shall, on conviction, be punished with imprisonment for a term which may extend to six months and shall also be punished with fine which shall not be less than the amount of the fine, premium or sum or deposit or the value of the consideration received by him, and further where the offence is committed by a landlord in respect of premises which were of his ownership on the date of the offence such premises shall be liable to confiscation.(2)Where any fine, premium or other like sum or deposit or any consideration referred to in sub-section (1) is paid by any person, the amount or value thereof shall be recoverable by him from the landlord to whom it was paid or on whose behalf it was received or from his legal representative at any time within a period of six months from the date of payment and may, if such person is a tenant, without prejudice to any other remedy for recovery, be deducted by him from any rent payable by him to such landlord.(3)Nothing in this section shall apply to any payment made under any agreement entered into before the first day of September 1940 or at any payment made by any person to a landlord by way of a loan, for the purpose of financing the erection of the whole or part of residential building or a residential section of a building on the land held by him as an owner, a lessee or in any other capacity, entitling him to build on such land, under an agreement which shall be in writing and shall, notwithstanding anything contained in the Indian Registration Act, 1908, be registered. Such agreement shall inter alia include the following conditions, namely:-(i)that the landlord is to let to such person the whole or part of the building when completed for the use of such person or any member of his family;(ii)that the rate of interest on such loan shall not be less than four per cent per annum;(iii)that such loan shall be repayable by the landlord within a period of ten years from the date of the execution of the agreement or within a period of six months from the date of the termination of the tenancy by the landlord, whichever period expires earlier;(iv)that the amount of the loan shall be a charge on the entire building and the entire interest of the landlord in the land on which such building is erected:Provided that if the loan has been advanced by more than one person all such persons shall, notwithstanding anything contained in any law for the time being in force, be entitled to a charge on the entire building and the entire interest of the landlord in such land rate ably according to the amount of the loan advanced by each of such persons;(v)that the landlord shall use the amount of the loan for the purpose of erecting the whole or part, as the case may be, of the residential building and for no other purpose; and(vi)(a)that the erection of the building shall be completed within a period of two years from the date of the execution of the agreement or if the agreements executed are more than one from the date of the execution of the first of such agreements:Provided that the said period of two years may be extended to a further period not exceeding one year with the sanction of the Collector:(b)that if the erection of the building is not completed within the period of two years or within the extended period specified in the proviso to clause (a), the loan shall be repayable forthwith to the person advancing the same with interest at the rate of four per cent per annum].(4)If any landlord who has received a loan under an agreement in accordance with the provisions of sub-section (3), contravences, without any reasonable excuse any of the conditions specified in the said sub-section (3), such landlord shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine, or with both.Explanation 1.- For the purposes of sub-section (1) - (a) except as provided in sub-section (3) receipt of rent in advance for more than three months in respect of premises let for the purposes of residence, or(b)where any furniture or other article is sold by the landlord to the tenant either before or after creation of tenancy of any premises the excess of the price received over the reasonable price of the furniture or article, shall be deemed to be a fine or premium or consideration.Explanation II. - For the purposes of sub-section (3), "member of the family" means in the case of an undivided Hindu family any member of such family and, in the case of any other family the husband, wife, son, daughter, father, mother, brother, sister or any other relative of the person permanently residing and boarding with him.
