Only 4 states adopt Tenancy Law even after two years

03 Oct 2023 CW Team

The model law mandated rental agreements and limited the security deposit to two months rent. Its purpose was to free up vacant houses in the rental market by protecting homeowners' interests. On August 24, the Ministry had written to the chief secretaries of states and UTs, reminding them of the benefits of the Model Act and requesting them to either enact a law or amend the existing tenancy law based on it. According to the letter, this was the fifth such communication from the Ministry to states and UTs since June 2021, when the Cabinet had approved the Model law.

The Ministry emphasised, "It is appreciated that the Model Tenancy Act strives to balance the rights of tenants and landlords in a transparent and accountable manner. It also has the potential to unlock vacant premises, creating a vibrant and formal rental market to strengthen the economy."

Ministry officials, speaking anonymously, disclosed that only Assam, Uttar Pradesh, Tamil Nadu, and Andhra Pradesh had adopted the law in some form or another. Other states had not responded to the Ministry's reminders since 2021, as confirmed by a senior official.

In July 2022, the Ministry had informed the Rajya Sabha that only these states had embraced the Act, and the number of states adopting it had remained unchanged until now. Tamil Nadu and Andhra Pradesh had enacted their laws before the final Model Tenancy Act was approved, in 2017 and 2018, respectively.

This decision came after the Ministry had suggested repealing old rent control acts and enacting new tenancy laws during the launch of the 'Housing for All' mission in 2015. Assam and Uttar Pradesh had enacted their laws in 2021, following the approval of the Model Act.

More than two years had passed since the Union Cabinet had approved the Model Tenancy Act for circulation to States and Union Territories (UTs). Despite reminders from the Ministry of Housing and Urban Affairs (MoHUA), only four states had adopted the law, which aimed to strike a balance between the interests of tenants and landlords. The model law mandated rental agreements and limited the security deposit to two months rent. Its purpose was to free up vacant houses in the rental market by protecting homeowners' interests. On August 24, the Ministry had written to the chief secretaries of states and UTs, reminding them of the benefits of the Model Act and requesting them to either enact a law or amend the existing tenancy law based on it. According to the letter, this was the fifth such communication from the Ministry to states and UTs since June 2021, when the Cabinet had approved the Model law. The Ministry emphasised, It is appreciated that the Model Tenancy Act strives to balance the rights of tenants and landlords in a transparent and accountable manner. It also has the potential to unlock vacant premises, creating a vibrant and formal rental market to strengthen the economy. Ministry officials, speaking anonymously, disclosed that only Assam, Uttar Pradesh, Tamil Nadu, and Andhra Pradesh had adopted the law in some form or another. Other states had not responded to the Ministry's reminders since 2021, as confirmed by a senior official. In July 2022, the Ministry had informed the Rajya Sabha that only these states had embraced the Act, and the number of states adopting it had remained unchanged until now. Tamil Nadu and Andhra Pradesh had enacted their laws before the final Model Tenancy Act was approved, in 2017 and 2018, respectively. This decision came after the Ministry had suggested repealing old rent control acts and enacting new tenancy laws during the launch of the 'Housing for All' mission in 2015. Assam and Uttar Pradesh had enacted their laws in 2021, following the approval of the Model Act.

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