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Bengaluru rentals: What can tenants do if landlords do not refund the security deposit?
Lawyers suggest sending a legal notice to the landlord to refund the deposit. However, the rent agreement must be registered with the sub-registrar's office
As rents in Bengaluru continue to soar, landlords are demanding security deposits of six to nine months' rent, often exceeding ₹3 lakh. However, many tenants face challenges when landlords refuse to refund the deposit or impose hefty deductions at the end of the lease.
Take the case of Rajib Agarwal (name changed), who had to file a police complaint to recover his ₹3.5 lakh security deposit from his Bengaluru landlord. His landlord had initially promised to return the deposit within two weeks of him vacating the Whitefield apartment but later stopped responding to his calls.
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Read the rental agreement carefully
Amit Agarwal, CEO and co-founder of NoBroker said it is important for the tenant to make a note of the appliances present in the apartment before signing the rental agreement.
Legal experts say one must carefully go through the rental agreement before signing on it. "There are many important clauses in the agreement that both parties must agree to. I have often seen landlords ask for heavy security deposits, and many don’t even return the amount at the end of the lease tenure," Priyanka Kwatra, an advocate at the Karnataka High Court, said.
In many cases, landlords make arbitrary deductions from the security deposit during refunds, especially with smaller amounts. "If a tenant damages property or pays rent late, deductions may apply. However, tenants can seek legal recourse or opt for an out-of-court settlement," said Kwatra.
"The first thing any tenant should do after moving into a new apartment is to take a video or photo of the apartment to keep evidence of its rented condition. That will protect the tenant when the landlord later deducts money from the deposit for repairing purposes,” Srinivas G, another advocate, said.
In cases where the landlord fails to return the deposit, Agarwal added that sending a legal notice demanding a refund from the landlord may help. "Even before that, the tenant should inform the apartment association. The resident welfare associations often have the power to take action against the landlord," Agarwal said.
"If it is a hefty amount and the landlord fails to refund the deposit, the tenants can also approach the lower courts for relief. The court can pass a stay on the rental agreement, asking the tenant not to vacate until the money is recovered or direct the landlord to return the deposit," Advocate Vittal BR said.
However, in these cases, the agreement must be registered at the local sub-registrar's office. "If the rental agreement is for 11 months or less, the landlord is not required to register the document legally. In such cases, the court will ask the tenant to pay a penalty and register the document before proceeding," Srinivas said.
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Should you send a legal notice?
However, tenants can also approach local police stations in some cases. "It is most likely that the police will refer to this as a civil case. But it can also play an important role as a mediator to resolve the issue," Srinivas G, another advocate, added.
"One can also approach the police, but this is usually not the best course of action because police involvement is usually only relevant in cases involving fraud or criminal activity, and a landlord not returning a deposit is typically a civil matter. Instead, one should primarily pursue legal channels, such as filing a civil lawsuit in court, to recover the money," Srinivas said.
Advocates say the first step is to send a legal notice to the owner and then approach the civil court. If none of these solutions works out, a criminal cheating case could be brought against the landlord. Additionally, a police report could be filed if the security deposit refund is denied.
However, this is only for registered rental agreements, add legal experts.
