In a bid to prevent property-related disputes between tenants and landlords in the state, the Uttar Pradesh government has implemented an ordinance.
The ordinance, which was passed in January but was on hold till now, has been put into effect and shall replace the 48 years old U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972.
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The new ordinance has made it mandatory for a legal rent agreement to be agreed upon between the two parties before the renting of a property.
The rationale behind the ordinance is stated as safeguarding the rights of both the landlords and tenants in the state and preventing disputes between the two.
The ordinance was approved in a Cabinet meeting chaired by state Chief Minister Yogi Adityanath.
The new law has the provision to regulate the increase of rent by the landlord. In the residential areas the increase in rent is capped at 5 per cent per year while it is not supposed to exceed 7 per cent per year in non-residential areas.
Also, as per the ordinance, the landlord can evict the tenant in the situation wherein the latter fails to pay the rent for two consecutive months. The security deposit is not to exceed the amount equal to two months’ rent for residential areas and six months in case of non-residential areas.
In case of any dispute between the tenant and the landlord, the Uttar Pradesh Regulation of Urban Premises Tenancy Ordinance, 2021 also states that the rent authority and appellate tribunal will have to dispose of any dispute within 60 days.
“Once this law is in place, there will be much more transparency in the agreement between the tenant and landlord and therefore, there will be no scope for petty disputes or at least, there will be much more clarity on several issues,” an official told news agency PTI.
“For example, the law will make it clear whose responsibility it would be for painting, paying maintenance, water, power bills etc,” the official added.
