NEW DELHI: Former law and telecom minister Kapil Sibal , who recently lost his seat in the lower House of Parliament, will shortly move to a luxurious residence in leafy Lutyens’ Delhi, paying a princely rent of Rs 16 lakh a month.The bungalow, built on a 1,250 square yard plot in Jor Bagh, overlooking the Safdarjung Tomb, is owned by Delhibased businessman Siddharth Sareen, the brother-inlaw of Emaar MGF promoter Shravan Gupta. Both Sibal and Sareen confirmed that they had signed an agreement for the house, but refused to reveal the contracted rent.Persons closely associated with the deal said Sareen had demanded Rs 18 lakh for the bungalow, but settled for Rs 16 lakh. Even at that price, this will be among the most expensive houses on rent in the city.In November 2013, Mumbai entrepreneur Kamal Morarka , who was a minister in the Chandra Shekhar government, reportedly rented a bungalow on the same street for Rs 18 lakh a month. Sibal told ET he will vacate his government bungalow on Teen Murti Road and move to his new house just before the lease commences on August 1.“I have already written to the ministry that I will vacate the home before August 1. I want to get out as soon as possible,” he said.The new house will also have an office for his law practice. Sibal, one of India’s best known constitutional and corporate lawyers — he represented Birlas in the case versus Lodha, and big MNCs such as Pepsi — had stopped practicing after becoming a minister in the Manmohan Singh government a decade ago.Several top ministers of the previous government are among around 265 Lok Sabha MPs who have been asked to vacate their government accommodations by the end of this month, after they lost the elections, to make way for 316 new MPs. Realtors who operate in the Lutyen’s zone say in addition to Sibal, there are a few other former MPs who are looking to rent properties, and this has resulted in rents shooting up after a long time in the area.Of the 1,000-odd bungalows in the zone, under 10% are privately owned while the rest belong to the government. The Prime Minister’s residence, the President’s house, all important government offices, the Parliament are all only a short drive away from the private part of the zone, one of the reasons why many want an exclusive abode here.Some of India’s leading businessmen — LN Mittal, KP Singh, Sunil Mittal, the Burmans, Shashi and Ravi Ruia, Malvinder and Shivinder Singh, Analjit Singh, Naveen Jindal, Atul Punj and Hari Bhartia -- own houses in Lutyen’s Zone. Jindal, who also lost the elections, has a bungalow in Prithviraj Road and is building a new house on a plot at Man Singh Road, which he bought some years ago.