The Centre has proposed a “model tenancy law” under which landowners will be required to provide tenants with written notice three months before revising rent, a move aimed at regulating renting of premises in the country.
The proposed law also advocates appointing districtcollector as rent authority and heavy penalty on tenants for overstaying.
According to it, tenants overstaying will have to pay doublethe rent for two times and four times thereafter.
The security deposit to be paid by the tenant in advancewill be a maximum of two months’ rent.
The Union Housing and Urban Affairs Ministry has put thedraft of ‘The Model Tenancy Act, 2019’ in public and sought comments frompeople and other stakeholders till August 1.
It states that both landlord and tenant will have to submita copy of rent agreement to the district Rent Authority which will also havethe power to revise or fix rent following a request either by landlord ortenant.
States, which will be free to adopt the law owing to landbeing state subject, will be required to constitute rent courts and renttribunal, it stated.
This proposed law will be applicable prospectively and willnot affect the existing tenancies.
“In the event of tenant’s refusal to carry outscheduled or agreed repairs, the landowner shall get the repairs done anddeduct the amount from the security deposit,” it also stated.
If the landowner refuses to carry out the required repairs,the tenant can get the work done and deduct the same from periodic rent.
It also stated that a landowner cannot enter the rentedpremises without 24-hour prior notice to carry out repairs or replacement.
According to the proposed law, a landowner cannot cut powerand water supply in case of a dispute with the tenant.
“The Rent Authority may direct for compensation on theperson responsible for cutting off or withholding the essential supply.
“The Rent Authority may levy a penalty be paid to thelandowner or tenant if it finds that the application was made frivolously orvexatiously,” it stated.
It also stated, “Within two months of executing rentalagreement, both landowner and tenant will be required to intimate the RentAuthority about the agreement and within seven days, a unique identificationnumber will be issued by the Rent Authority to both the parties.”Later, the HUA ministry issued a statement,saying as per the Census 2011, nearly 1.1 crore houses were lying vacant in thecountry and making them available on rent will complement the vision of’Housing for All’ by 2022.