Centre In Talks With West Bengal Government On New Tenancy Act

To make the rent laws seamless between the landlords and tenants, the central government has finally initiated the Model Tenancy Act (MTA) in 2021. The main aim of Pradhan Mantri Yojana is to build 20 million homes for poor people by the end of 2022. 

The central government has also sanctioned this MTA in different states aiming for a unified structure nationwide. However, the Bengal tenancy act is almost the same as other acts which deal in the state jurisdiction.

Few legal inferences are also related to the Model Tenancy Act induced by the Central Government. They are as follows;
1.    Any owner must give a notice period of about three months before increasing the amount of rent money.
2.    As per the tenancy law, if any tenant is going for residential property, they have to deposit a security deposit for two months. On the other hand, if the renting is for commercial property, you have to pay a security deposit of six months.
3.    The Tenancy Act also states the provision penalty. In any given scenario, if the tenant refuses to leave the premises when the agreement expires, then a double amount will be charged to them as rent. Moreover, the tenants have to pay this doubled amount for two months as a penalty. 
4.    There is a provision for owners as well in the tenancy law. The owners cannot hold basic supplies like water, electricity that has a connection with the occupied land or premises of the tenants. Again, the tenancy act also states that it is the owner’s responsibility to repair or remove any house structure.

Other Essential Provision Under Model Tenancy Act

The Model tenancy act deals with lands, properties and the duties related to the land and rights. All the states have permission to alter the law rights present in this act. The following provisions are as follows;
1.    This law does not apply to the existing tenants
2.    Hotels, lodges, dharamshalas, premises for commercial use do not fall under this Tenancy law.
3.    A rent authority should be present to maintain the interest equally of the landlords and tenants.
4.    Always maintenance of written agreement between both parties is mentioned in the MTA.
5.    Only with the permission of the landlord, the sub renting facility can be done.
6.    The tenancy will be on a month-to-month basis on the terms and conditions mentioned in the agreement before. 
7.    In case of any natural damage conditions like an earthquake, cyclone, etc., the landlords have to give certain leverages to the tenant. 
8.    A written notice 24 hours before entering the premises should be provided by the landlord to enter the rented area.

Tenant Eviction

According to the Bengal Tenancy Act, there are laws and restrictions against the tenants as well. You can evict your tenant on the following scenarios;
1.    If the tenant disagrees or does not pay the rent after notifying within a month.
2.    As per the Tenancy act, it states if the tenant misuses or handles the rented property, then they can be evicted immediately by the landowner.
3.    When the tenant constructs any permanent wall or structure inside the rented premises without any permission of the owner.

Importance Of Model Tenancy Act

The relationship between landlord and tenant over the years has grown into conflicts. The fear of possession and repossession, late payment, or no payment of the rent leads to court procedures. The new model tenancy law is formed to balance the mutual interests of tenants and landlords. 
Durga Shanker Mishra, the secretary of the union ministry of housing and urban affairs, has recently stated that the center is constantly in touch with the state government of West Bengal to execute the new act. Mishra further added certain changes in this act; the real estate sector can improvise in 2025 by 10%.

Conclusion

The present GDP value of the real estate sector is around 7%. Therefore with the Prime minister’s goal of 5 trillion economy aim, the Indian Real estate can still set up to 1 trillion in the upcoming years. To protect the interests of the landlords and tenants, the Model Tenancy Act and Bengal Tenancy Act can bring revolutionary changes.