Rent Control legislation in Kerala an Economic Analysis: A legislation that backfired (English Edition)

The rent control backfired and rent high rocketed along with the system of Key money or pakidi a social evil. The only beneficiary of Rent Control legislation is those who managed to take buildings, which come under Rent Control, on rent before the rent sky rocketed and managed to establish business. The high rent prevented other entrants in the business field and thus they succeed to avoid competition, which is also a social evil and the general public is the looser. Those who wants to enter retail business has to pay high Key money for obtaining a suitable building and has to pay high rent. The result has been a virtually closed community. It is almost impossible for newcomers to find accommodation in a commercial area at a reasonable rate. People build houses for their own occupation, no entrepreneur will invest in building for renting it out. Providing housing is perceived by some as an illegitimate enterprise. "Greedy landlords" become public enemies and the entire political apparatus is geared up to subdue them. Article 19 (1) g of the constitution provides All citizens the right to practice any profession, or to carry on any occupation, trade or business. Yet all that is really at stake is public willingness to accept the idea that some people make their living by providing housing.