The Rs 100 Rent Paradox in Connaught Place: How Tenants Earn Lakhs

In the heart of Delhi's Connaught Place, a unique real estate scenario sees tenants paying a mere Rs 100 in rent while earning substantial profits. This article delves into the historical and legal reasons behind this anomaly.

Connaught PlaceReal EstateColonialeraRent ControlCommercial RentsReal Estate NewsJul 19, 2025

The Rs 100 Rent Paradox in Connaught Place: How Tenants Earn Lakhs

Real Estate News:New Delhi: Beneath the grand white colonnades and bustling storefronts of Delhi’s iconic Connaught Place (CP), a peculiar real estate paradox continues to thrive, one rooted in colonial-era paperwork.

Despite being one of India’s costliest commercial zones today, where rents skyrocket between Rs 300 and Rs 700 per sq ft per month, several tenants are still paying a mere Rs 100 as monthly rent. Why? Because their lease agreements date back to the British Raj, and legally, those contracts still stand.

Imagine renting prime real estate in CP, a place home to brands like Starbucks, Nike, and Pizza Hut, for less than the cost of a Netflix subscription. That’s the reality for a select few who hold onto lease deals inked nearly a century ago. These outdated documents, signed when George VI was still on the throne, have allowed generations to occupy valuable retail spaces at throwaway prices.

Behind CP’s glittering facades lies a maze of frozen rents, inherited lease deeds, and iron-clad agreements that haven’t evolved since the 1940s. Many of these tenants, or their descendants, now sublet the same spaces to global giants, raking in lakhs every month while paying next to nothing themselves.

The arrangement might seem absurd, but it’s legal. The original owners, often families who leased properties during the British period, are locked out of any renegotiation. Some now earn only a few hundred rupees a month in rent, even as the shops on their land pull in crores annually.

“It’s colonial-era paperwork powering a capitalist playground,” said one real estate expert familiar with CP’s leasing history. “Owning property here doesn’t guarantee income, tenants do.”

Today, CP commands some of the highest commercial rents in the country. Yet these legacy agreements, backed by rent control laws and uninterrupted possession, allow a handful of tenants to operate under financial conditions frozen in time.

What’s more, many of these leaseholders don't run businesses themselves. They sublet their spaces to multinational corporations who willingly pay lakhs each month to secure a foothold in the heart of Delhi.

While these arrangements are perfectly legal, they raise moral and regulatory questions. Should public property leased decades ago still be governed by terms made in a colonial context? Can the government or civic bodies intervene to modernise this economic anomaly?

Frequently Asked Questions

What is the rent paradox in Connaught Place?

The rent paradox in Connaught Place refers to the situation where some tenants pay a mere Rs 100 in rent while earning substantial profits, due to lease agreements dating back to the British Raj.

Why do some tenants pay such low rent in Connaught Place?

These tenants pay low rent because their lease agreements were signed during the British period and are legally binding, allowing them to occupy valuable retail spaces at throwaway prices.

How do these tenants profit from such low rent?

Many of these tenants sublet their spaces to multinational corporations, who pay high rents to secure a foothold in the heart of Delhi, while the original tenants pay next to nothing.

Can the original property owners renegotiate the rent?

No, the original property owners are locked out of renegotiation due to the legal binding of the colonial-era lease agreements.

Is there a possibility of modernizing these rent agreements?

While these arrangements are legal, there are moral and regulatory questions about whether public property leased decades ago should still be governed by colonial-era terms. The government or civic bodies may eventually intervene to modernize this economic anomaly.