Tamil Nadu govt puts on hold act protecting owners, tenants

CHENNAI: An ambitious act on tenancy, that was to bring about a seachange in renting out properties by balancing the rights of landlords and tenants, has hit a roadblock as the state government is awaiting the Centre’s revised act.
Modelled on the Union housing and urban affairs ministry’s draft Tenancy Act, the state government had introduced the Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants bill in the assembly last year. But the central government’s decision to revise the original act by incorporating suggestions of various states has delayed Tamil Nadu from implementing its version of it.

Official sources with the state’s housing and urban development department said that draft rules for the Tenancy Act were at the final stage. “But, the Union government is revising the model act. Our act is based on the Centre’s legislation. If the act is implemented now in Tamil Nadu, we will have to make amendments to match it with the Centre’s model act again. Hence, it has been decided to wait for the fresh model act,” an official with the housing and urban department said.

During a meeting with the Prime Minister’s Office (PMO) regarding the model tenancy act, in which five states including Maharashtra and Tamil Nadu had participated, some states represented that there must be no change on rental issues for old buildings.

Official sources said that they had no clue of when the Union ministry will release the revised act.

While the Tenancy Act will cover all urban areas, it would replace the existing Rent Control Act. The act aims at the regulation of rents while balancing the rights and responsibilities of landlords and tenants and mandates an agreement between the landlord and tenant for renting out any premises. Government sources said that the need for the act was felt because the prevailing Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 (Rent Control Act) was skewed towards the tenants.

Chennai Real Estate Agents Association president Azeem Ahmed said that the Tenancy Act will help quick disposal of disputes over rentals like the Real Estate Regulatory Act, in the light of several cases are pending in courts for a prolonged period. “Both the landlords and tenants will know their limitations after the act comes into force,” he added.