2nd June, 2021
The Union Cabinet on Wednesday approved the Model Tenancy Act (MTA). Under this, rent authority, courts and tribunals will be constituted in the districts to protect the interests of tenants and owners. For residential premises, the tenant will have to deposit an amount equal to a maximum of two months' rent as security, while for commercial property, an amount equal to six months' rent. The cabinet meeting was chaired by Prime Minister Narendra Modi.
States and Union Territories can implement the Model Tenancy Act by making a new law or by amending the existing rules. Under this law, all new tenants will have to enter into a written agreement and deposit the same with the rent authority of the district concerned. The rent and its duration shall be fixed in writing with the mutual consent of the owner and the tenant. The government said that the Model Tenancy Act will be implemented with "probability" and will not affect the existing tenancy. It wants to encourage private partnership as a business model to address the housing shortage. This will develop the rental house market in the country. House will be available to people of all income groups and the shortage of house will be overcome.
Cannot remove tenant in the middle
The law states that the landlord or property manager cannot withhold the supply of essential services to the premises in which the tenant is residing. The tenant cannot be evicted during the term of the contract unless there is a written agreement between the two parties. If the landlord wants to get some additional work done in that house and the tenant does not approve the same, then the landlord can take up the matter in the rent court.
the owner is responsible for the repair of the property
Under the Model Tenancy Act, if the agreement is not agreed upon, then the owner is responsible for carrying out necessary work like repair of the property, painting of walls and windows, replacement of water supply pipeline as per requirement, and maintenance of external and internal electrical wiring. Will be If any damage is caused to the tenant, then he will get it repaired.
Tenant will have to get minor works done
Cleaning of drains, repair of switches and sockets, repair of kitchen appliances, replacement of glass panels in doors and windows, maintenance of gardens and open spaces will be the responsibility of the tenant. Union Housing and Urban Affairs Minister Hardeep Singh Puri said the move would help in changing the legal framework regarding rental housing across the country.
India-Japan Memorandum of Cooperation for Urban Development approved
The Union Cabinet has approved the signing of a Memorandum of Cooperation between the Ministry of Housing and Urban Affairs of India and the Ministry of Land, Infrastructure, Transport, and Tourism of Japan for sustainable urban development. This will replace the MoU signed in the year 2007. Under this, a joint working group will be constituted for the implementation of cooperation programs and formulation of strategy. According to the government, the objective of the MoU is to strengthen technical cooperation between India and Japan in the field of sustainable urban development.
SCO agreement for communication media cooperation approved
The Cabinet gave its approval with retrospective effect to the signing and ratification of the Agreement on Cooperation in the Field of Communication Media among the member countries of the Shanghai Cooperation Organization (SCO). The purpose of this agreement is to promote equal and beneficial common cooperation among various associations in the field of communication media.