Meghalaya HC orders Defence Ministry to justify massive rent hike for Shillong cantonment residents

The Meghalaya High Court has directed the Defence Ministry to provide detailed justification for a staggering rent increase that saw monthly payments jump from Rs 3 to Rs 13,000 for cantonment properties in Shillong.

A bench comprising Chief Justice IP Mukerji and Justice W Diengdoh delivered the judgment on July 3, after hearing three appeals from residents who challenged the sudden rent revision implemented in April 2022.

The controversy centres around approximately 3,000 residents living on Defence Ministry land in Shillong cantonment, who had been paying nominal rents for over a century. The ministry's new Standard Rent Determination formula resulted in demands that shocked long-term tenants.

One resident, Bala Krishna Thapa, received a demand notice claiming Rs 1,18,823 for nine months as a condition for lease extension - a jump from his previous annual rent of Rs 36. Another notice presented during the hearing demanded Rs 4,74,425 from April 2022 to December 2025.

The court noted that while the ministry has the right to revise rents based on market valuation, the process must be fair and transparent. "The flaw in the impugned demand notice is that it merely makes an annual valuation without providing any details," the judgment stated.

Chief Justice Mukerji emphasised that government authorities cannot act like private landlords, observing: "Even while playing the role of a landlord or a tenant, the State and its authorities remain so and cannot be heard or seen causing displeasure or discomfort to Article 14 of the Constitution of India."

The court cited landmark Supreme Court cases establishing that public authorities must adhere to principles of fairness, reasonableness and equality, even in contractual matters.

However, the court also acknowledged the residents' responsibility, noting: "They were paying rent of only ₹3 per month till March, 2022. They have an equal duty to ensure that a reasonable rent is paid by them to the government for enjoyment of these properties."

Rather than quashing the demand notices entirely, the court treated them as "proposed demand notices" and ordered the Defence Ministry to:

- Provide detailed calculations of revised rent within six weeks
- Consider objections from leaseholders within two months
- Grant hearings to affected residents through their association representatives

Until final demand notices are issued, residents must pay 40% of the arrears demand by December 31, 2025, either in full or in instalments. They must also continue paying 40% of the current lease rent demands from June 2025.