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ARTICLE · 10 AUGUST 2021

MODEL TENANCY ACT, 2021: A MIXED BAG

Shardul Amarchand Mangaldas & Co
Shardul Amarchand Mangaldas & Co
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Shardul Amarchand Mangaldas & Co

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Rental housing being predominantly an urban phenomenon, has been in the need of a uniform regulation for long. The Union Cabinet on June 2, 2021 approved the Model Tenancy Act, 2021 ("Act")...

IndiaReal Estate and Construction
Shrutikirti Kumar
Shrutikirti Kumar
Karuna Sharma
Karuna Sharma
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Introduction

Rental housing being predominantly an urban phenomenon, has been in the need of a uniform regulation for long. The Union Cabinet on June 2, 2021 approved the Model Tenancy Act, 2021 (“Act”) for adoption by all the States and Union Territories, after several years of deliberation. The primary objective of the Act is to regulate the rental housing market i.e. residential and commercial premises, by establishing guidelines for tenancy, rights and obligations for landlords and tenants and adjudication mechanism for disputes arising out of tenancy.

Overview of Rental Market

As per the 2015 draft National Urban Rental Housing Policy, cities i.e. urban areas face a significant accommodation shortage and this cannot be addressed by home ownership solely. The Economic Survey (2017-18) by Ministry of Finance, Department of Economic Affairs noted that India's housing policies have been mostly focused on building more homes and on home ownership, however the

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