Overview
- The Home Ministry extended five state laws to Chandigarh under Section 87 of the Punjab Reorganisation Act, replacing the East Punjab Urban Rent Restriction Act, 1949 with the Assam Tenancy Act, 2021.
- All rentals must have a written agreement filed with a Rent Authority, which will run a digital registration portal and issue a unique ID for each tenancy.
- The law caps security deposits at two months’ rent for homes and six months for commercial premises, creating clearer, lighter up-front costs for tenants.
- Tenants who overstay after a tenancy ends must pay double the monthly rent for the first two months and four times the rent thereafter until they vacate.
- Disputes will shift to a three-tier setup of Rent Authority, Rent Court and Rent Tribunal with Tehsildar-rank authorities and time-bound disposal, while cases already pending under the 1949 law continue there.