Union Cabinet nods Model Tenancy Act

The Union Cabinet, at a meeting on June 2, approved the Model Tenancy Act (MTA) for adoption and enactment by states and UTs.

The Act aims at balancing the interests and rights of both the owners and tenants in an accountable and transparent manner, said a press release issued by the Ministry of Housing and Urban Affairs.

After the enforcement of the Act, no person shall let or take on rent any premises except by an agreement in writing. The Act will be applicable prospectively and will not affect existing tenancies. Rent and duration of tenancy will be fixed by mutual consent between owner and tenant through a written agreement.

There is no monetary ceiling under MTA, which enables parties to negotiate and execute the agreement on mutual agreed terms. It will give confidence to landlords to let out their vacant premises, said the Government release.

The MTA mandates for written agreement for all new tenancies which is to be submitted to the Rent Authority. A digital platform will be set up in the local vernacular language or the language of the state/UT for submitting tenancy agreement and other documents. It would avoid dispute by clarifying the roles and responsibilities of landlord as well as tenant.

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Further, a time bound and robust grievance-redress mechanism comprising Rent Authority, Rent Court and Rent Tribunal will provide fast-track resolution of disputes. Complaints and appeals to Rent Court and Rent Tribunal will be disposed of within 60 days.

The Act also provides that subletting of premises will only be with the prior consent of the landlord. No structural change in the premises by tenant will be allowed without the written consent of the landlord. Tenant will continue to pay the rent even during the pendency of a dispute with a landlord.