Gujarat Slum Areas (Improvement, Clearance and Redevelopment) Act, 1973
(1) Where any building in a slum area is let to a tenant after the execution of any work of improvement or after it has been re-erected the rent of the building shall be determined in accordance with the provisions of this section. (2) Where any such building is let to a tenant other than a tenant who is placed in possession of the building in pursuance of a direction issued under sub-section (4) of section 18, the tenant shall be liable to pay to the owner,— (a) if the Rent Act in force in the area in which the building is situated and is applicable to that building, the rent determined in accordance with the provisions of that Act or the agreed rent whichever is less; (b) if the said Act is not in force in such area, such rent as may be agreed to between the owner and the tenant. (3) Where any such building is let to a tenant in pursuance of a direction issued under sub-section (4) of section 18, the tenant shall be liable to pay to the owner— (a) if any work of improvement has been executed in relation to the building, an annual rent of a sum equivalent to the aggregate of the following amounts, namely :— (i) the annual rent the tenant was paying immediately before he vacated the building for the purpose of execution of the work of improvement; (ii) six per cent of the cost of the work of improvement; (b) if the building has been re-erected, an annual rent of a sum equivalent to four per cent of the aggregate cost of re-erection of the building and the cost of the land on which the building is re-erected. Explanation:—For the purpose of this clause the cost of the land shall be deemed to be a sum equivalent to the market value of the land on the date of commencement of the re-erection of the building.