Assam Model Tenancy Act 2021_00.1
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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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