Assam Model Tenancy Act 2021

Relevance

• GS 1: Urbanization, their problems and their remedies.

Context

• Recently, Assam has become the first Indian state to adopt and implement the Model Tenancy Act.

Key points

• The Act is aimed at establishing a rent authority to regulate market-driven renting of premises while protecting the interests of both the landlord and the tenant.
• The Act proposes a three-tier quasi-judicial mechanism to govern tenancy agreements in residential and commercial premises and undertake dispute resolution by instituting district-level Rent Authorities and Rent Courts along with state-level Rent Tribunals
• The Act also moves away from the mechanism of imposing a ceiling on rent, and allows landlords to charge the rent based on the market value of the property.

Benefits

• The adoption of the new Act, by dismantling rent control, has the potential to rationalize the rental housing sector.
• Establishment of a separate mechanism for the efficient redressal of disputes will generate confidence among home-owners.
• The new Act can also benefit tenants in cases where landlords often ask for a large security deposit.

About the Model tenancy Act approved by the Union Cabinet

• The Model Act requires the landlord and tenant to sign a written agreement which specifies the rent, period of tenancy and other related terms. Security deposit is capped at two months’ rent for residential premises, and six months’ rent for non-residential premises.
  • Conditions for eviction of tenant under the Model Act include
  • Refusal to pay agreed upon rent
  • Failure to pay rent for more than two months
  • Occupation of part or whole of premises without written consent
  • Misuse of premises despite a written notice.

• The Model Act establishes a three-tier quasi-judicial dispute adjudication mechanism consisting of
  • Rent Authority
  • Rent Court and
  • Rent Tribunal.
• No civil court will have jurisdiction over matters pertaining to provisions under the Model Act.
• Rent Authorities and Rent Courts may be established by the District Collector with the approval of the state government. The state or union territory government may establish a Rent Tribunal after consulting with the jurisdictional High Court.

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