Govt receives 400 suggestions from stakeholders on proposed model tenancy law

The Centre received around 400 suggestions from various stakeholders till August 1 on the proposed model tenancy law under which land owners will have to give a three months' notice before revising rent.

An official said the Union Housing and Urban Affairs Ministry is presently examining these suggestions and once the process is completed a cabinet note will be prepared for further process.

Last month, the ministry had put the draft of the 'The Model Tenancy Act, 2019' in public domain for consultation and sought suggestions from stakeholders till August 1.

"We have received around 400 suggestions from all stakeholders, which are currently under examination of the ministry. After examination, a cabinet note will be prepared," the official said.

With the approval of the Union cabinet, the final draft of the Model Tenancy Act will be circulated to states.

The proposed law also advocates appointing district collector as rent authority and heavy penalty on tenants for overstaying.

Tenants overstaying will have to pay twice the rent for two months and then quadruples in subsequent months.

However, the landowner cannot cut power and water supply in case of a dispute with the tenant.

The security deposit to be paid by the tenant in advance will be a maximum of two months' rent.

Last month, the government had said as per the census 2011, about 1.1 crore houses are lying vacant in the urban areas across the country.