Rent from property given to bsnl telephone exchange

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rahul navedia (Querist)
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22 June 2015 My father has given a property on Rent to BSNL Telephone Exchange Udaipur on 08/02/2000 at monthly rent of 15000 pm.
We are receiving the same rent of 15000 pm now also. Thers is no Increment.
So Please let me know how much rent can i receive from them

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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24 June 2015 Check the agreement between your father and BSNL w.r.t period of lease, rent enhancement etc.

Irrespective of the terms of the agreement, in your case, you are silent on enhancement of rent and receiving the same amount for the last 15 years. This amounts to a kind of acceptance whether express / implied.

However, you legal remedies such as sending notice for
- vacation of the property,
- cancellation of agreement,
- rent enhancement etc.

are available.

The amount of rent that should receive depends on the market rates in the vicinity and negotiations between your family and BSNL.

rahul navedia

rahul navedia (Querist)
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28 June 2015 Thankyou sir for your prompt reply.
The agreement with bsnl was for 5 year i.e from 08/02/2000 to 07/02/2005. After that there was no new agreement with BSNL.
We have given notice to either they should vacate or give the rent as per the market rate.
The reply from BSNL was that they are ready to give rent of Rs 17500/- per month.
But as per the market rate we should receive rent of upto Rs 48000/-
I didd'nt understood how had they computed the rent of Rs 17500/-

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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21 July 2025 Thanks for sharing the details—this is a common situation with long-standing leases, especially with government entities like BSNL.

Key points from your case:
Original lease: 5 years (08/02/2000 to 07/02/2005) at Rs 15,000/month rent.

No new agreement after expiry in 2005.

You have served notice to vacate or revise rent as per current market.

BSNL offered Rs 17,500/month.

Market rate is around Rs 48,000/month.

BSNL’s computation of Rs 17,500 isn’t clear to you.

What might be happening here?
Holdover tenancy:
Since BSNL continued to occupy the property after the lease expired without a new agreement, this creates a holdover tenancy—tenant remains without formal renewal.

Implied tenancy terms:
The original terms may still apply, or reasonable rent may be charged. Courts usually look at market rent for such cases.

BSNL’s offer (Rs 17,500):
This could be based on:

A negotiated increase from Rs 15,000 (about 17% increase over 15 years, which is quite low compared to inflation/market).

BSNL may be referencing internal valuation or government norms for rent escalation.

They may be reluctant to pay full market rent due to long-term relationship or budget constraints.

Your market rate (Rs 48,000):
This is likely based on current local market valuations for similar properties.

What can you do?
Negotiate with BSNL based on market rates, providing evidence of comparable rents.

Legal notice: If BSNL refuses, you can consider legal proceedings to recover market rent or evict.

Check government norms: Sometimes, government bodies like BSNL have fixed ceilings or norms for rentals on such properties.

Professional valuation: Engage a registered valuer or real estate consultant to issue a formal rent valuation report.

Why might BSNL’s rent be low?
Government tenants often pay concessional rents.

BSNL might be using a rent escalation formula or a government guideline.

They might expect renewal of lease at negotiated terms.

Summary for you:
Aspect Comment
Original lease expired 2005 No formal renewal, creating holdover tenancy
BSNL’s offer Rs 17,500 Possibly based on internal or concession norms
Market rent Rs 48,000 Reflects actual prevailing rents
Legal options Notice, negotiation, or legal recovery

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