Delhi building collapse: 3 months’ deposit, zero liability – how the hostel’s rent agreement protected its owners

A 27-hour rescue operation ended after seven people died and 12 were pulled from the debris. Five survivors were injured, with three reported to be in serious condition.

New Delhi: Three months' security deposit, one month's advance rent and a clause saying the hostel would not be responsible if a student suffered a casualty or faced a risk. These are among the terms listed in the rent agreement of the now-collapsed ‘Hostel Daze’ in New Delhi's Satya Niketan locality.

The agreement emerged online a day after the five-storey building collapsed, killing seven people. The document sets out several obligations for students, including payments, damage to hostel property and the conditions under which their money could be withheld.

One clause in the agreement states, "The PG authorities are not responsible against any casualties or risk to me (student)."

The agreement required students to pay three months' security along with one month's advance rent. It also stated that the security deposit would not be refunded under any circumstances before the agreement period ended. Any damage to furniture or fixtures could be recovered from the deposit.

Students were also prohibited from putting posters or stickers on the walls. Anyone leaving before the agreed period ended was told they would not receive a refund of hostel fees or security money, including in cases where a student was expelled for disciplinary reasons.

What did hostel's terms say about injuries?

A separate terms and conditions document for the hostel dealt with situations involving injury and damage to personal belongings.

It stated that in cases of "personal injury suffered/loss/damage of personal belongings of the tenant due to reasons beyond the control of the PG viz sealing/fire/earthquake/heavy rains/other natural calamities etc., the hostel will not be liable for paying any compensation”.

The document also gave the hostel management the power to move a student to another room or hostel location whenever "circumstances" required it. Management could also evict a student immediately over disciplinary issues, with no refund of hostel fees or security money.

Three members of the family arrested

The police have arrested three people in connection with the building collapse. They are Hariram Bansal, his wife Urmila and their son Mahesh Bansal.

Records show that the electricity connections for the property are registered in the names of the father-son duo. The property is registered in Urmila's name.

The building was a five-storey structure in the Satya Niketan area that housed a boys' hostel. It was nearly 50 years old and occupied around 55 square yards of land in a resettlement colony.

A senior MCD official said permission had been granted for only a two-storey structure on the property. No building plan had been approved for the building.

Renovation was still underway

The building had been in poor condition for several months. Its location near Delhi University made it a popular choice for student accommodation, as many students from across the country live and study in the area.

Owner Hari Ram Bansal spent several months renovating the building. It started taking in tenants in August this year, with most of them being students. The property had around 30 rooms, with each room intended to house two to three students.

Construction work was still going on when the building collapsed. Labourers were working in the basement at the time. Two of the 11 people rescued from the debris were labourers, and one of them died.

Neighbouring building had demolition order

The Municipal Corporation Delhi (MCD) had issued an order on September 6 to a neighbouring property (number 13) in Satya Niketan. The order directed the owner or occupier to demolish the structure, citing a threat to residents, visitors, passers-by and nearby buildings.

The building that collapsed was property number 14, according to an MCD statement.

The property was registered as residential and was not intended for commercial use such as running a paying-guest hostel. It was being used to accommodate dozens of students despite its residential status.

'Pathetic condition'

The Delhi High Court has ordered a high-level investigation into the collapse. While hearing a public interest litigation (PIL) on Monday (September 7), the court described hostel facilities for students coming from outside Delhi as being in a "pathetic condition”.

The civic body also suspended five officials a day after the collapse. The suspended officials are Deputy Commissioner (South Zone) Rakesh Kumar, Superintending Engineer Ranvir Singh, Executive Engineer (Building) Lalit Kumar Goel, Assistant Engineer (Building) Sunil Chauhan and Junior Engineer (Building) Ashish Kumar of the South Zone.

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