The Centre on Thursday extended The Assam Tenancy Act, 2021, to the Union Territory replacing the East Punjab Urban Rent Restriction Act, 1949, which has governed landlord-tenant relations in the city for over 70 years. Rentals are likely to decline with the implementation of the new law.
The notification by the Ministry of Home Affairs comes under Section 87 of the Punjab Reorganisation Act, 1966, which empowers the Centre to extend laws from any state to Chandigarh, which does not have a legislature of its own.
The extended law, “Assam Tenancy Act, 2021 as extended to the Union Territory of Chandigarh” has taken immediate force and introduces major changes to the way landlord-tenant ties are governed in the city. Among the most impactful new provisions is — the need for all tenancies to be executed through a written agreement now.
Both landlord and tenant must jointly inform the Rent Authority about the tenancy within two months of signing the agreement. The Rent Authority is required to establish a digital platform within three months of appointment, enabling online submission of tenancy documents. In a major relief for tenants, the new law caps security deposits.
For residential premises, deposits cannot exceed two months’ rent and for non-residential and commercial premises, these cannot exceed six months’ rent. “This addresses a longstanding practice of landlords demanding excessive deposits, particularly in Chandigarh’s competitive rental market,” officials said.
Rent revision has also been streamlined. A landlord can increase rent only after carrying out improvements or structural additions on the premises with the tenant’s prior written consent. In case of a dispute over rent revision, the Rent Authority will determine the revised amount.
Maintenance of premises duties between the landlords and tenants stand clearly defined. On the landlord’s side, the responsibilities cover structural repairs — except those necessitated by damage caused by the tenant — along with whitewashing of walls, painting of doors and windows, changing of plumbing pipes when necessary, and maintenance of internal and external electrical wiring. The law requires the tenant to periodically attend to smaller upkeep tasks such as replacing tap washers and taps, cleaning drains, repairing water closets, wash basins, bath tubs and geysers. The tenant will also attend to circuit breakers, switches and sockets, repairing kitchen fixtures, replacing knobs and locks of doors, cupboards and windows, replacing fly-nets and glass panels, and maintaining any gardens or open spaces let out for use.
The Act says a tenant cannot be evicted during the tenancy period except on specific grounds, namely non-payment of rent for two consecutive months, subletting without the landlord’s written consent, misuse of premises, landlord’s genuine need to carry out repairs or reconstruction that requires the property to be vacated, structural changes by a tenant without landlord’s written permission, and landlord’s requirement to carry out work following a court-directed change in land use.
Tenants will get one-month window to clear arrears after receiving a notice, before eviction order can be passed.
The law also prescribed protections for tenants in cases of natural calamities rendering the premises uninhabitable.
Further, it prohibits landlords and property managers from withholding essential services in premises occupied by a tenant. These services include water supply, electricity, piped cooking gas, lighting in passages and stairways, lift access, conservancy, parking, communication links, sanitary services and security fixtures.
The Rent Authority can not only pass interim orders for restoration of such blocked services. It can also award compensation of up to two months’ rent to the affected tenant. Conversely, if the tenant’s complaint is found false, the Rent Authority can levy a penalty of up to twice the monthly rent on the tenant.
ADAPTATION FOR CHANDIGARH
In Chandigarh, Rent Authority must be an officer not below the rank of Tehsildar, as against the Assam Act’s which mandates a Circle Officer.
PENDING CASES UNDER OLD LAW
The East Punjab Urban Rent Restriction Act, 1949, which has been in force in Chandigarh since the city’s establishment, stands repealed with the commencement of this new law. However, all pending cases under the 1949 Act will continue to be heard and disposed of under the old law, ensuring no disruption to ongoing litigation.
Three-tier dispute resolution mechanism
First level is the Rent Authority — an officer not below the rank of Tehsildar, appointed by the Chandigarh DC with the approval of the Administrator. Appeals from Rent Authority lie to the Rent Court, headed by an Additional Deputy Commissioner or an officer of equivalent rank. Rent Tribunal is the apex appellate authority.
