Union Cabinet gives nod to Model Tenancy Act

ANIUpdated: Wednesday, June 02, 2021, 03:50 PM IST
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Union Minister Hardeep Singh Puri | ANI

The Union Cabinet, on Wednesday, approved the Model Tenancy Act for circulation to all States and Union Territories for adaptation by way of enacting fresh legislation or amending existing rental laws suitably.

It will help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth.

Union Minister for Housing & Urban Affairs, Hardeep Singh Puri said, "Model Tenancy Act provides model for urban & rural properties & template for residential & commercial properties. Will apply to future transactions & take people from informal to specific contract arrangement between landlord & the tenant".


The Model Tenancy Act will establish the Rent Authority for regulating renting of premises in an efficient and transparent manner and to balance the interests of owner and tenant by establishing adjudicating mechanism for speedy dispute redressal and even a separate court to take up all tenancy-related disputes.

The Act will develop the policies to promote balanced rental housing by developing different options of rental housing like individual units, dormitories, hostels, co-living, co-housing, paying guest and employee housing and outline the roles of various stakeholders in order to ensure housing for all.

The draft model tenancy law has proposed limiting the advance security deposits to two months’ rent, and has also suggested heavy penalties for tenants who decide to overstay. Those who do may have to shell out double the rent for two months and even four times.

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