Major Tenancy Reforms Implemented in Chandigarh

Chandigarh, May 13: Chandigarh has implemented significant tenancy reforms, extending the Assam Tenancy Act 2021 to replace the outdated 1949 Act. The move aims to formalize the rental market and reduce disputes through mandatory written agreements.

Impact on Rental Market

The move is expected to have a far-reaching impact in a city where nearly 50 per cent 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 The new framework replaces the outdated East Punjab Urban Rent Restriction Act, 1949.

Implementation Timeline

According to officials, the provisions of the Act will be fully operational within a month, including the establishment of a dedicated Rent Authority and a web portal for registration of rent deeds. UT chief secretary H Rajesh Prasad confirmed that the Centre issued the notification on May 6. Till the portal becomes operational, people can manually submit their registered deeds.

Key Benefits

Prasad highlighted key benefits: "Mandatory written tenancy agreements will ensure that rent, duration, revision, and other key conditions are clearly specified upfront, thereby reducing disputes." A structured legal process for eviction and recovery of possession will ensure due process while curbing arbitrary actions. The Act will also enhance transparency, with designated authorities ensuring a more efficient, accessible, and accountable system.

Transition and Dispute Resolution

Existing court disputes will continue to be adjudicated under the 1949 Act, while all new tenancies will fall under the 2021 framework. The tenancy reforms are part of a broader package in which five state laws have been extended to Chandigarh, including modern regulations on property valuation, fire safety, and prevention of human smuggling.