3 years on, MHA yet to table Tenancy Act in Parliament
Even after more than three years, the Ministry of Home Affairs (MHA) is yet to table the Chandigarh Tenancy Act in Parliament for approval for the regulation of rent and to balance the rights and responsibilities of landlords and tenants.
After considering objections and suggestions from public, the UT Administration had in February, 2022, finalised the Chandigarh Tenancy Act and after getting approval from the then UT Administrator Banwarilal Purohit, it was sent to the MHA, which will table the Act in Parliament for approval.
A senior UT official said they would pursue with officials of the MHA to introduce the Act in the Monsoon session of Parliament. Once passed, the Centre would notify the Act for adoption by the UT Administration for regulation of rent in the city, he said. In June 2021, the Union Cabinet had approved the Model Tenancy Act, which was to be adopted by the states and UTs.
Rent authority to regulate renting of premises
1. A rent authority will be established for regulation of renting out of premises and to balance interests of owner and tenant
2. A rent court and a rent tribunal will be established to hear appeals
3. The rent authority will have exclusive jurisdiction over tenancy issues
4. All rent agreements will have to be submitted to this authority
5. The authority will adjudicate on all disputes between landlord and tenant
6. No landowner or property manager or tenant, either by himself or through any person, can cut off or withhold any essential supply or service on the premises
With the implementation of the Act, a rent authority will be established for regulation of renting out of premises and to balance the interests of the owner and tenant by establishing an adjudication mechanism for speedy dispute redressal. A rent court and a rent tribunal will be established to hear appeals.
The rent authority will have exclusive jurisdiction over tenancy issues. All rent agreements will have to be submitted to this authority. At present, these can be registered at the sub-registrar’s office.
The authority will adjudicate on all disputes between landlord and tenant. At present, rent-related disputes are resolved by civil courts, where the pendency rate is high.
After the implementation of the Act, no person can let out or take on rent any premises except by an agreement, which will be informed to the rent authority by the landowner and tenant jointly within a period of two months from the date of agreement. Else, the landowner and tenant will have to separately file the particulars about the tenancy agreement within a month.
No landowner or property manager or tenant, either by himself or through any person, can cut off or withhold any essential supply or service on the premises.
In case a tenant does not vacate the premises after his tenancy has been terminated by an order, notice or as per the agreement, the landowner is entitled to get compensation of double the monthly rent for two months and four times the monthly rent thereafter for the use and occupation of a premises by the tenant.
Chandigarh
