CHANDIGARH: After over six years of discussions between the Centre and the UT administration, significant tenancy reforms are now in effect in Chandigarh following the adoption of the Assam Tenancy Act, 2021.
This reform is anticipated to greatly impact the city, where nearly 50% of the residents live in rented properties. Realty analysts predict that many residential and commercial spaces will enter the formal rental market, potentially alleviating rental pressures and positively affecting rental values through increased supply.
The new legislation replaces the outdated East Punjab Urban Rent Restriction Act, 1949, which has long been deemed inadequate for contemporary socio-economic conditions.
According to officials, the Act’s provisions will become fully functional within a month, including the creation of a dedicated Rent Authority and an online portal for registering rental agreements.
H Rajesh Prasad, the UT chief secretary, confirmed the Centre issued the notification for these reforms on May 6. “Until the portal is operational, individuals can submit their registered deeds manually,” he stated. Existing court disputes will continue to be handled under the 1949 Act, while all new tenancies will comply with the 2021 regulations.
Prasad emphasized the advantages of these reforms: “Mandatory written tenancy agreements will clarify rent, duration, revisions, and other key terms, thereby minimizing disputes.” He mentioned that a structured legal process for eviction and recovery of possession will ensure due process and prevent arbitrary actions.
He added, “Transparency will be enhanced as designated authorities for tenancy matters will create a more efficient, accessible, and accountable system. This Act is expected to improve the utilization of available housing and increase rental accommodation, especially in urban regions.”
The draft notification faced prior opposition from local lawyers, including strikes against the proposal. Addressing these concerns, Prasad assured that advocates can continue to represent clients within the new framework and that all stakeholders’ interests have been taken into account.
The reforms aim to achieve a balance between the interests of landlords and tenants while updating rental regulations in the UT, according to Prasad.
These tenancy reforms are part of a broader initiative where five state laws have been extended to Chandigarh, including updated regulations on property valuation, fire safety, and human trafficking prevention.
