Extension of the Assam Tenancy Act 2021 to the Union territory of Chandigarh
In the Assam Tenancy Act, 2021 (hereinafter referred to as the Principal Act), is extended to the Union
territory of Chandigarh w.e.f 6th may 2026
key features of the Assam Tenancy Act, 2021 (as extended to Chandigarh):
Here are the key features of the Assam Tenancy Act, 2021 (as extended to Chandigarh):
- Mandatory Written Agreements: All new tenancies must be established through a written agreement. Landlords and tenants must jointly inform the Rent Authority about this agreement within two months. To facilitate this, the Rent Authority will establish a digital platform for submitting tenancy documents.
- Establishment of Adjudication Bodies: The Act sets up a three-tier mechanism—comprising the Rent Authority, Rent Court, and Rent Tribunal—to regulate the renting of premises, protect the interests of both parties, and provide speedy resolution of disputes.
- Regulated Security Deposits: The Act legally caps the upfront security deposit. It cannot exceed two months’ rent for residential premises and six months’ rent for non-residential premises.
- Rent and Revisions Driven by Agreement: The amount of rent payable and the rules for any rent revisions are determined strictly by the mutual terms set in the written tenancy agreement.
- Protection of Essential Services: Landlords and property managers are strictly prohibited from withholding essential supplies and services, such as water, electricity, piped cooking gas, or sanitary services.
- Clear Eviction Grounds: Tenants cannot be evicted during the valid period of their tenancy agreement except on specific legal grounds. These grounds include failure to pay rent for two consecutive months, unauthorized sub-letting, misusing the premises, making unauthorized structural changes, or if the landlord needs to demolish and rebuild the premises.
- Heavy Penalties for Overstaying: If a tenant fails to vacate the property after the tenancy period expires, they must pay an enhanced rent: twice the monthly rent for the first two months, and four times the monthly rent thereafter until they leave.
- Force Majeure Protections: If a rented property becomes uninhabitable due to a “force majeure” event (such as a flood, earthquake, fire, or cyclone), the landlord is prohibited from charging rent until the property is repaired and made habitable again.
- Strict Rules for Sub-letting: Tenants are not allowed to sub-let the whole or any part of the premises, or assign their rights, without entering into a formal supplementary agreement to the existing tenancy.
- Formalization of Property Managers: The Act officially recognizes the role of “property managers” acting on behalf of landlords, specifically outlining their duties (like collecting rent and doing essential repairs) and making them accountable for any violations.
what happens to already done rent agreement before commencement of this act
- Mandatory Notification Applies to New Tenancies: The strict rule requiring landlords and tenants to execute a written agreement and submit it to the Rent Authority specifically applies to anyone who lets or takes on rent any premises after the commencement of this Act. (i,e from 6th may 2026)
- Pending Disputes Continue Under the Old Law: If there are any rent-related cases or legal proceedings that are already pending on the date this new Act begins, they will continue to be governed and resolved under the old East Punjab Urban Rent Restriction Act, 1949. The law mandates that these pending cases be treated exactly as if the old 1949 Act is still fully in force and the new 2021 Act had not been enacted.
- Sub-letting Under Existing Agreements: If a tenant holds a property under an existing tenancy agreement and wishes to sub-let it (or transfer their rights) after the new Act commences, they must formally enter into a supplementary agreement to the existing tenancy agreement. After executing this supplementary agreement, both parties must jointly inform the Rent Authority within a period of two months
Impact of extension of the Assam Tenancy Act, 2021 to the Union territory of Chandigarh
The extension of the Assam Tenancy Act, 2021 to the Union territory of Chandigarh introduces a structured legal framework that significantly impacts how property rent is determined, revised, and managed.
Here is a detailed breakdown of how this act impacts rent in Chandigarh:
1. Rent is Strictly Governed by Mutual Agreement
The act removes arbitrary statutory caps on initial rent amounts. The rent payable for any premises will be exactly what the landlord and tenant agree upon in their written tenancy agreement.
2. Rules for Rent Revision and Increases
- Standard Revisions: Any routine revision of rent must be carried out in accordance with the specific terms outlined in the tenancy agreement.
- Increases due to Improvements: If a landlord incurs expenses to carry out improvements, additions, or structural alterations to the premises (which do not include standard necessary repairs), they can increase the rent. This increase must be agreed upon by both parties and becomes effective one month after the completion of the work.
3. Resolution of Rent Disputes
If a dispute arises between the landlord and tenant regarding the revision of rent, either party can apply to a newly established Rent Authority. The Rent Authority has the legal power to determine the revised rent, set other payable charges, and fix the exact date from which the new rent becomes applicable.
4. Heavy Penalties for Overstaying Tenants
The act introduces severe financial disincentives for tenants who refuse to leave. If a tenant fails to vacate the premises at the end of their tenancy period or upon the termination of the agreement, they are liable to pay:
- Twice the monthly rent for the first two months of overstaying.
- Four times the monthly rent for every month thereafter until they vacate the property.
5. Right to Deduct Repair Costs from Rent
If a landlord refuses to carry out their obligated repairs, the tenant is legally permitted to carry out those repairs themselves and deduct the expenditure from their subsequent rent payments. However, to protect landlords, this deduction cannot exceed 50% of the agreed rent in any single month.
6. Rent Waivers During Natural Disasters
If a rented property becomes uninhabitable due to a “force majeure” event—such as a flood, earthquake, fire, cyclone, or war—the landlord cannot charge any rent from the tenant until the property is fully restored and made habitable again.
7. Strict Caps on Upfront Rental Costs (Security Deposits)
While not monthly rent, the act heavily impacts the upfront costs associated with renting by legally capping security deposits:
- Residential premises: Maximum of two months’ rent.
- Non-residential (commercial) premises: Maximum of six months’ rent.
8. Protections for Rent Payment
Landlords are legally required to provide a duly signed receipt for rent payments. If a landlord tries to artificially create a default by refusing to accept rent or refusing to provide a receipt, the tenant can send the rent via postal money order for two consecutive months. If the landlord still refuses, the tenant can deposit the rent directly with the Rent Authority to legally prove they have fulfilled their payment obligations.
Who acts as the Rent Authority for dispute resolution?
. Rent Authority- The Deputy Commissioner, Union territory, Chandigarh shall, with the previous approval of the Administrator appoint an Officer, not below the rank of Tehsildar to be the Rent Authority in a specified jurisdiction
Based on the modified rules for Chandigarh, the Rent Authority is an officer appointed by the Deputy Commissioner of the Union territory of Chandigarh.
Specifically, the act mandates that the appointed officer must not be below the rank of a Tehsildar. This appointment is made with the prior approval of the Administrator of Chandigarh, and the appointed Rent Authority is assigned to a specific jurisdiction to handle such matters.