Assam Becomes First State To Establish Rent Authority

Assam has followed the Model Tenancy Act to establish a rent authority to set up a mechanism for the regulation of renting of premises.

As per the new law, the rents will be driven by the existing market scenario and will also be ascertained through a mutual agreement between the tenants and the landlords. It does away with the practice of artificially capping the rent of premises.

This bill was put forth in the Assam legislative assembly on 9 August, and thus the Assam Urban Areas Rent Control Act, 1972, is therefore repealed.

“Various contentious issues arise between a landlord and a tenant. Some do not respect agreements when it comes to leaving the premises,” Ashok Singhal, Assam’s Housing and Urban Affairs Minister, was quoted in a report by The Times of India.

Singhal added, “This results in landlords not letting out accommodation. After this Act comes into force, the letting-out process will become easier.”

The Act mentioned above mandates setting up a rent authority, rent court and rent appellate at the district level to ensure an expeditious adjudication mechanism for dispute resolution between the tenants and owners.

The Act even defines the duties and obligations of both landlords and the tenants for adequate maintenance of the premises.