NEW DELHI: Only four states, Tamil Nadu, Andhra Pradesh, Uttar Pradesh, and Assam, have revised their tenancy laws on the lines of the model tenancy law circulated by the Union government in 2021, Union housing and urban affairs minister Hardeep Singh Puri told Lok Sabha on Thursday.
The relationship between landlord and tenant was primarily a state subject. The housing and urban affairs ministry, however, prepared the model law in an effort to assist states to overhaul their tenancy legislations to promote rental housing in the country, Puri said in a written response to a starred question by Bardoli MP, Vasava Parbhubhai Nagarbhai.
This model law was approved by the Union cabinet and circulated to all states on June 7, 2021, for adoption by way of either enacting fresh legislation or amending existing rental laws suitably, he added.
According to the government, the model law seeks to balance the rights of landlords and tenants and provide a transparent, responsible framework for the effective rental of real estate. The draft National Urban Rental Housing Policy, 2015 had also noted that the current affordable housing shortage in Indian cities could be addressed by promoting rental housing.
Among other things, the law dictates that property owners and tenants form a written agreement that specifies details such as rent, the period of rent, terms, and conditions based on which the rent can be revised and the security deposit paid. This agreement has to be notified to the rent authority within two months. The bill also states that the security deposit cannot exceed two months’ rent for residential properties and not more than six months for non-residential premises. Further, subletting premises without a supplementary written agreement is prohibited.
{{/usCountry}}Among other things, the law dictates that property owners and tenants form a written agreement that specifies details such as rent, the period of rent, terms, and conditions based on which the rent can be revised and the security deposit paid. This agreement has to be notified to the rent authority within two months. The bill also states that the security deposit cannot exceed two months’ rent for residential properties and not more than six months for non-residential premises. Further, subletting premises without a supplementary written agreement is prohibited.
{{/usCountry}}The law requires the landlord to apply to the rent authority for eviction of the tenant based on conditions like when the tenant is not able to pay rent for more than two months. A special three-tier quasi-judicial authority that would adjudicate matters within 60 days is to be set up following the law to solve disputes.
Meanwhile, the minister of state for housing and urban affairs Kaushal Kishore, told the Lok Sabha in response to another question that under the Pradhan Mantri Awas Yojana - Urban scheme, a total of 5,648 existing houses constructed under Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awas Yojana have been converted to Affordable Rental Housing complexes. Further, another 82,273 houses have been built since July 2020.
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