The Ministry of Housing and Urban Affairs
("Ministry") has prepared a Draft Model
Tenancy Act, 20201
("MTA") with the objective of balancing
the interests and rights of landlords and tenants and to create a
more efficient and transparent system for renting premises, both
residential and commercial barring those for industrial use.
According to a background note2 issued by the Ministry in
respect of the MTA, the Government wishes to promote the growth of
the rental market by creating a more sustainable and inclusive
rental market in India. While there are various State laws and
regulations governing tenancy in India, presently there exists no
codified legislation for rent matters. According to the Ministry,
it is expected that State tenancy laws based on the MTA will be
beneficial to both landlords and tenants. A codified regulation
such as the MTA which among other things proposes a speedy dispute
redressal mechanism for rent disputes is a step in the right
direction.
