The Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017

What the Bill covers

The Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Bill, L.A. Bill No. 38 of 2017, proposes rules for rented premises in all urban areas of Tamil Nadu. Urban areas include areas under municipal corporations, municipalities, town panchayats and cantonment boards. The Government may exclude areas, units or classes of buildings by notification.

The proposed framework covers buildings or parts of buildings rented separately for residential, commercial or educational use. Industrial premises, hotels, lodging houses, dharamshalas, inns and similar accommodation are outside the stated definition of premises.

Who may be affected

L.A. Bill No. 38 of 2017 may affect landlords, tenants, sub-tenants and property managers dealing with covered urban premises. It does not ordinarily apply to:

• Premises owned or promoted by the Central Government, State Government, a local authority, government undertaking, statutory body or cantonment board.
• Employee accommodation rented by a company, university or organisation as part of a service contract.
• Specified premises owned by religious or charitable institutions.
• Premises owned by a registered Waqf or a trust registered under the Indian Trusts Act, 1882.
• Other building categories exempted by the Government in the public interest.

Owners within certain exempt categories may choose to have their tenancy agreement regulated under the proposed framework by informing the Rent Authority.

Key proposed provisions

L.A. Bill No. 38 of 2017 provides that:

• New tenancies must have a written agreement, jointly reported by the landlord and tenant to the Rent Authority.
• Existing written agreements must be reported. Where no written agreement exists, the parties must make one and report it.
• If the parties cannot jointly submit an agreement or agree on its terms, each party must separately file tenancy particulars.
• The Rent Authority must register the agreement, issue a registration number and upload tenancy details to its website within fifteen days after issuing that number.
• Unreported agreement statements cannot be received as evidence of tenancy facts in a court of law.
• The tenancy period is the period agreed by the parties and recorded in the agreement.
• A fixed tenancy that expires without renewal or vacancy is treated as continuing month-to-month on the same terms for no more than six months.

The Bill also lists provisions concerning rent, deposits, repairs, essential services, repossession, Rent Courts, Rent Tribunals and Rent Authorities.