Model Tenancy Act, 2019

As proposed by the Union Finance Minister in her budget speech, the Ministry of Housing and Urban Affairs has released the draft Model Tenancy Law, 2019, and has invited comments from the public till August 1 for the same.

Features of the Proposed draft Law

• The law seeks to establish a Rent Authority to be appointed by the District Collector for regulating renting of premises in an efficient and transparent manner and to balance the interests of owner and tenant by establishing an adjudicating mechanism.
• It also seeks to establish Rent Court and Rent Tribunal to hear appeals and for matters connected therewith.
• It also proposes that the deposit collected by the owner would be a maximum of two months’ rent in case of a residential property and one month rent in case of a non-residential property.
• The model law lists obligations of the owner and tenant and lays down rules about the rent agreement, extension of the agreement, increase of rent and its acceptance, whose liability it is in certain cases so that money is not arbitrarily deducted for repairs and other damages, etc.
• It lays down conditions for evicting a tenant and further provides that no landowner, property manager or tenant either by himself or through any person shall cut-off or withhold any essential supply or service in the premises occupied by the tenant or the landowner.
• It also provides for compensation which is double the monthly rent for two months and four times the monthly rent thereafter, for the use and occupation of a premise by a tenant who does not vacate the premises after his tenancy has been terminated.

Since the land is a state subject and states will have the option to adopt or reject it. The model law aims to replace current rental laws which are archaic as they do not address the relationship between the lessor and lessee realistically and fairly.