UP Govt brings in tenancy ordinance, rent agreement made mandatory

The Uttar Pradesh on Saturday decided to promulgate a tenancy-related ordinance, saying it is aimed at “safeguarding” the rights of both landlords and tenants in the state and preventing disputes between the two parties in the future.

The decision to bring in Uttar Pradesh Regulation of Urban Premises Tenancy Ordinance, 2021 was taken at a Cabinet meeting chaired by Chief Minister Yogi Adityanath.

Sources in the government said that under the proposed law, a rent agreement will be made mandatory for a property to be given on rent. A rent authority would also be set up and any new rent agreement would have to be registered with it.

The authority would issue a unique identification number and within seven days of receiving an agreement, would upload details of the tenant on its website. The details of tenants may not be shared with the authority if the duration of the tenancy is less than 12 months, sources said, quoting the ordinance.

Also, under the new ordinance, the house owner can only hike rent of 5 per cent annually for domestic usage and 7 per cent for commercial.

A clause in the proposed law says that not paying rent for two months would lead to the eviction of the tenant.

The ordinance, according to the sources, stated that the rent authority and appellate tribunal would have to dispose of any dispute within 60 days.

The tenant and the property owner will jointly decide the duration of the tenancy and any renewal of the agreement, as per the provisions of the proposed law.

The points mentioned in the agreement will continue to be applicable to the successor of both the tenant and the landlord in the case of death of one or both. The new law lays down responsibilities of the landlord, increase in rent on renewal of the lease, details of the rent authority which will consider cases of dispute etc, sources said.

According to a government official, once this law is in place, there will be much more transparency in the agreement between the tenant and the landlord and therefore. “Once this law is in place, there will be much more transparency in the agreement between the tenant and landlord and therefore, there will be no scope for petty disputes or at least, there will be much more clarity on several issues,” said the official.

“For example, the law will make it clear whose responsibility it would be for painting, paying maintenance, water, power bills etc,” the official added.