Chandigarh: After more than six years of deliberations between the Centre and the UT administration, significant tenancy reforms have finally come into effect in Chandigarh with the extension of the Assam Tenancy Act, 2021.The move is expected to have a far-reaching impact in a city where nearly 50% of the population lives in rented accommodations. Realty experts anticipate that hundreds of residential and commercial properties will enter the formal rental market, potentially easing rental pressures and exerting a positive influence on rental values by increasing supply.The new framework replaces the outdated East Punjab Urban Rent Restriction Act, 1949, which has long been considered ill-suited to current socio-economic realities.According to officials, the provisions of the Act will be fully operational within a month. This includes the establishment of a dedicated Rent Authority and a web portal for the registration of rent deeds.UT chief secretary H Rajesh Prasad confirmed that the Centre issued the notification for these reforms on May 6. “Till the portal becomes operational, people can manually submit their registered deeds,” he said. Existing court disputes will continue to be adjudicated under the 1949 Act, while all new tenancies will fall under the 2021 framework.Prasad highlighted key benefits of the reforms: “Mandatory written tenancy agreements will ensure that rent, duration, revision, and other key conditions are clearly specified upfront, thereby reducing disputes.” He said a structured legal process for eviction and recovery of possession will ensure due process while curbing arbitrary actions.The chief secretary said, “It will also enhance transparency. Designated authorities for tenancy matters will ensure a more efficient, accessible, and accountable system. The Act is expected to promote better utilisation of available housing stock and improve availability of rental accommodation, particularly in urban areas.”The draft notification had earlier faced strong opposition from local lawyers, including strikes against the proposal. Addressing concerns, Prasad said advocates can continue to represent clients under the new system and that the interests of all stakeholders have been considered.The reforms aim to balance the interests of landlords and tenants while modernising rental regulations in the UT, said Prasad.The tenancy reforms are part of a broader package in which five state laws have been extended to Chandigarh. These include modern regulations on property valuation, fire safety, and prevention of human smuggling.BOX1: Key Provisions of the New Tenancy LawMandatory Written Agreements: Every tenancy must be backed by a formal written agreement, which has to be submitted to the Rent Authority. Tenancy without a registered agreement will not be recognised. The terms are binding on successors, and sub-letting requires a supplementary agreement.Security deposit: Limited to a maximum of two months’ rent for residential properties and six months’ rent for non-residential premises.Three-Tier Adjudication System: Disputes will move out of regular civil courts for faster resolutionRent Authority – Handles registration and preliminary issues.Rent Court – For formal adjudication.Rent Tribunal – For appeals (to be presided over by a District Judge or Additional District Judge).No civil court shall entertain any suit or proceeding in so far as it relates to the provision of this Act.Cases are expected to be disposed of within 60 days, with a cap of three adjournments. The system will feature a digital platform for submissions, unique identification numbers for parties, and public upload of tenancy details.Rent and Revision: Rent and revision terms will be set in the agreement. In case of disputes, the Rent Authority can determine the revised rent and the date from which it becomes payable.Eviction Rules: Tenants cannot be evicted during the tenancy period unless specified otherwise in writing. Eviction is permitted on grounds such as non-payment of rent, unauthorised sub-letting, misuse of property, or unauthorised structural changes. In cases where a tenant refuses to vacate after the agreement ends, rent can be enhanced twice the monthly rent for the first two months and four times thereafter.BOX2: Rights and obligations of landlords and tenantsTenants must pay rent on time and receive receiptsBoth parties must maintain the premises in good conditionLandlords can inspect premises after 24 hours’ noticeLandlords cannot withhold essential supplies; violations can attract penalties via the Rent AuthorityRent agreement will define their responsibilities
