Section 4 in The Tamil Nadu Buildings (Lease and Rent Control) Act, 1960
4. [ Fixation of fair rent. [Substituted by section 6 of the Tamil Nadu Buildings (Lease and Rent Control Amendment Act, 1973 (Tamil Nadu Act 23 of 1973).] - (1) The Controller shall, on application made by the tenant or the landlord of a building and after holding such enquiry as he thinks fit, fix the fair rent for such building in accordance with the principles set out in the following sub-sections.
(2)The fair rent for any residential building shall be nine per cent gross return per annum on the total cost of such building.(3)The fair rent for any non-residential building shall be twelve per cent gross return per annum on the total cost of such building.(4)The total cost referred to in sub-section (2) and sub-section (3) shall consist of the market value of the site in which the building is constructed/ the cost of construction of the building and the cost of provision of any one or more of the amenities specified in Schedule as on the date of application for fixation of fair rent:Provided that while calculating the market value of the site in which the building is constructed, the Controller shall take into account only that portion of the site on which the building is constructed and of a portion up to fifty per cent thereof the vacant land, if any, appurtenant to such building, the excess portion of the vacant land, being treated as amenity:Provided further that the cost of provision of amenities specified in Schedule shall not exceed-(i)in the case of any residential building, fifteen per cent; and(ii)in the case of any non-residential building, twenty-five per cent, of the cost of site in which the building is constructed, and the cost of construction of the building as determined under this section.(5)(a)The cost of construction of the building including cost of internal water-supply, sanitary and electrical installations shall be determined with due regard to the rates adopted for the purpose of estimation by the Public Works Department of the Government for the area concerned. The Controller may, in appropriate cases, allow or disallow an amount not exceeding thirty per cent, of the cost of construction having regard to the nature of construction of the building.(b)The Controller shall deduct from the cost of construction determined in the manner specified in clause (a), depreciation calculated at the rates specified in Schedule II.]
