The Union Cabinet approved the Model Tenancy Act (MTA) on June
02, 2021. The headline feature of this Act is setting up of
separate rent authorities, courts, and tribunals at district level
for protecting the interest of both the Tenant and the Landlord.
MTA will have a prospective effect and both the States as well as
Union Territories can adopt the law either by enacting fresh
legislation or by amending the existing laws already
prevailing.
MTA seeks to cover both urban and rural areas and will apply to
premises let out for residential, commercial, or educational use
but not for industrial use. The primary requirement under the MTA
is that written agreement is a must for all new tenancies which
would be governed by the MTA and the said agreement has to be
submitted to the concerned District Rent Authority. MTA does not
provide for a fixed duration and the amount of rent as these need
to be decided by the Tenant and the Landlord mutually through
written agreement.
