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ARTICLE · 24 JUNE 2021

Model Tenancy Act: A Brief Overview

The Union Cabinet has approved the draft Model Tenancy Act in 2021 which was drafted by the Ministry of Housing and Urban Affairs in 2020.

IndiaReal Estate and Construction

The Union Cabinet has approved the draft Model Tenancy Act in 2021 which was drafted by the Ministry of Housing and Urban Affairs in 2020. According to the Census of 2011, a total of approximately 1 crore houses is unrented and vacant in urban areas1. The concerns for the same being various conflicts in the landlord-tenant relationships, fear of repossession, non payments, late payments, damage to the premises, delayed court procedures, old local rental laws of each States which were not amended for many decades etc. After two years of announcement and one year of preparing of the draft, the Union Cabinet aims to enhance and improve the status of rent laws with Model Tenancy Act, 2021. Unlocking those houses for rent and creating a transparent and more balanced relationship as well as minimizing the cause of conflicts between the landlords and tenants for future is the objective of the Model Tenancy Act.

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