Rajdhani Pagdi Kirayadar Sangathan, an apex body with the support of over 5 lakh 'Pagdi' shopkeepers belonging to more than 70 market associations, said if the new law comes into force, it will end up displacing around 40 lakh shopkeepers.
The Sangathan demanded immediate implementation of Gujarat Rent Control Act which it said was the "most- balanced" law across the country.
The 'Pagdi Kirayadar' system was launched before Independence to avoid payment of excessive taxes to the British. The transfer of the property was as per a verbal agreement wherein the tenant was given a slip of rent payment while payments were made in full to the landlord. The system has been running successfully since then.
"Recently, 5 lakhs shops were asked to vacate under the Delhi tenant law where most of the shops are less than 20sq.Ft in area and are run by small traders and shopkeepers in various markets of Delhi," the Sangathan said in a statement.
Ravi Garg, President of the Sangathan said "the Model Tenant Act, 2015, drafted by the Ministry of Urban Development following the National Housing Policy has been approved by the Cabinet and is creating a "dreadful" feeling among tenants of losing their livelihood.