The Confederation of All India Traders (CAIT) Monday asked the government to introduce a "balanced" and "people-friendly" rental legislation.

CAIT also demanded that prior to framing the law, serious consultations must be held with stakeholders and an expert committee should be constituted by the government comprising senior government officials and representatives of stakeholders.

"The issue of rent act in Delhi is hanging fire for the since last 18 years because tenants have been demanding a fair play and justice and to make the act a balanced legislation,” CAIT secretary general Praveen Khandelwal said here.

The new law, which the government is in the process of framing, will determine the rentals according to inflation rates. The cabinet would consider a proposal to repeal the Delhi Rent Act of 1995 (DRA) and withdraw the Delhi Rent (Amendment) Bill of 1997, CAIT said.

According to it, landlords will be allowed to evict tenants for their genuine requirement.

“The issue needs to be debated and legislated in a broader perspective. Since the Delhi Rent Act will affect rent laws of other states in the country, it has assumed much importance and as such a careful consultation is needed,” Khandelwal added.