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Model Tenancy Act

Context:

According to Ministry of Housing and Urban Affairs (MoHUA), Model Tenancy Act has been rectified by only four states, i.e., Andhra Pradesh, Tamil Nadu, Uttar Pradesh, and Assam.

Relevance:

GS-III: Indian Economy (Growth and Development of Indian Economy)

Dimensions of the Article:

  1. What is the Model Tenancy Act?
  2. Significance

What is the Model Tenancy Act?

  • Model Tenancy Act, 2019, a tenancy law in India, was designed to rebuild tenancy market seeking to replace archaic rental laws of India and to solve housing availability deficit.
  • The Act seeks to penalize recalcitrant tenants for refusing to move out of their rental properties after the agreed-upon rental period expires.
  • The landlord will be able to claim double of the monthly rent for two months and four times of the monthly rent after that as compensation.
  • The Act stipulates that a landlord cannot refuse to provide essential utilities and access to common facilities. This has been a fairly common grouse of tenants in the past.
  • The landlord will also not be able to increase the rent without giving at least three months’ notice to the tenant, and cannot increase rent in the middle of a rental term.
  • In order to bring transparency, fix accountability and promote fairness in the rental housing segment, the policy proposes setting up of a rent authority.
  • The Act will help in achieving the target of “Housing for All by 2022”.
  • The Act is not binding on the states as land and urban development remain state subjects.

Significance:

  • In order to quickly resolve conflicts and other relevant issues, the authority will offer a method.
  • It will contribute to a nationwide revamp of the legal system governing rental homes.
  • In order to overcome the severe housing shortage, it is anticipated to boost private investment in rental housing.

-Source: The Hindu


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