Fair rent of a building or rented land, under the Himachal Pradesh Urban Rent Control Act, 1987, is…

Under section 4 of the Himachal Pradesh Urban Rent Control Act, 1987, as it stood before the 2012 amendment, the Controller fixed fair rent for buildings completed or land let on or before 25 January 1971 on the basis of the rent prevailing in the locality in 1971 for similar premises. For later buildings or lettings he used the rent agreed between landlord and tenant or, if none was agreed, the rent prevailing in the locality on the date of the application. Section 4(4) also allowed fair rent to be fixed on a compromise between the parties. Each basis applies in its own setting, depending on the cut-off date.