In a recent development, the central government revealed that they have received around 400 suggestions from various stakeholders on the proposed model tenancy act that was revived by them. As per the government’s proposal, under the new act, the property owners will have to give a three-month prior notice to the tenants, if they want to increase the rent.
A senior official from the Union Housing and Urban Affairs Ministry said, “The officials are presently examining all the suggestions. Once this process will be completed, a cabinet note will be prepared for further approvals.”
To make the law more transparent, the housing ministry has decided to put the proposed draft in public till August 1 to seek suggestions from various stakeholders.
The official further informed that till Aug 1, they have received around 400 suggestions which are currently under examination.
Once the proposed act will be approved by the cabinet, the new model tenancy act will be circulated to all the states.
Some other proposals which have been made under the new drafted model include appointing of district collector as rent authority, the addition of heavy penalty for tenants who overstay in a house and much more. However, the penalty comprises twice the rent for two months and if the delay persists, it will be quadrupled in subsequent months.
Also, the landlord cannot cut power and water supply in case of any dispute with the tenant.
Once approved the law is said to revive the rental housing market of India.