Model Tenancy Act, 2021 Gets Approved By The Cabinet – Key Features

The Union Cabinet chaired by Prime Minister Narendra Modi approved the Model Tenancy Act (MTA) on June 02, 2021, a move that is likely to refurbish the legal framework concerning rental housing across the country. Under MTA, both the States as well as the Union Territories can adopt the law either by enacting fresh legislation or by amending the existing laws already prevailing as per their needs and requirements. Under the seventh schedule of the state list of the Constitution of India, it is provided that land rights, land tenures including the relation of landlord and tenant, collection of rents, and land improvement are subjects regulated by states.¹ According to the government "The MTA aims at creating a vibrant, sustainable and inclusive rental housing market in the country. It will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness. MTA will enable institutionalisation of rental housing by