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Government's draft tenancy law proposes cap on rent rates, separate court for resolving disputes

Mini

The Narendra Modi government has finally come out with a draft model tenancy law which proposes to set up an independent authority in every state for the registration of all tenancy agreements, and a separate court for resolving tenancy-related disputes.

The Narendra Modi government has finally come out with a draft model tenancy law which proposes to set up an independent authority in every state for the registration of all tenancy agreements, and a separate court for resolving tenancy-related disputes.
The proposed law also has a provision to cap rent rates, and thus check any irregular hikes. States, which will be free to adopt the law owing to land being state subject, will be required to constitute rent courts and rent tribunal, it stated.
The draft law envisions that a deputy collector-rank officer will head the rent authority which will be set up by district collectors with the approval of the respective state governments. A website will be set up where the details of all agreements will available.
The draft model states that both the landlord and the tenant will have to inform the rent authority after getting into an agreement which in turn will ensure that a landlord does not arbitrarily increase the rent in variance with what has been agreed to in the agreement.
According to it, tenants who will be staying more than the stipulated period will have to pay double the rent for two times and four times thereafter. The security deposit to be paid by the tenant in advance will be a maximum of two months' rent.
The union housing and urban affairs ministry has put the draft of 'The Model Tenancy Act, 2019' in public for some for suggestions and comments.
"In the event of tenant's refusal to carry out scheduled or agreed repairs, the landowner shall get the repairs done and deduct the amount from the security deposit," it stated, "A landowner cannot enter the rented premises without 24-hour prior notice to carry out repairs or replacement."
A landowner will not be able to cut power and water supply in case of a dispute with the tenant, the model law stated.
"The Rent Authority may direct for compensation on the person responsible for cutting off or withholding the essential supply," the proposed law stated adding that the authority may levy a penalty be paid to the landowner or tenant if it finds that the application was made frivolously or vexatiously.

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