• Sun. Jul 12th, 2020

Housing ministry to seek cabinet approval on Model Tenancy Taw


Jun 24, 2020
tenancy Law

June 24, 2020: In order to give a fillip to the rental segment, the housing and urban affairs ministry will soon approach the Cabinet for approval of the model tenancy law. Housing Ministry Secretary Durga Shanker Mishra addressed a webinar organised by CII and property consultant Savills where he assured that the government will soon come out with detailed guidelines of the Affordable Rental Housing Complexes (ARHC) for urban poor and migrants.

The ministry had floated the draft model tenancy law in July 2019, which advocated that landowners will have to give a written notice to tenants three months before revising rent. It suggested appointing a district collector as rent authority and also planned heavy penalty on tenants for overstaying.

He was hopeful that all states would adopt this model legislation, which would go a long way in making the rental housing segment transparent and accountable. The model law seeks to balance the rights of both landlords and tenants.

Mishra also stated that online building permissions have already become operational in over 2,000 cities across 14 states and would be in effect across all 4,400 cities by March next year. He mentioned that the revival of real estate was a priority and would happen soon as the sector presents huge growth opportunities because of rapid urbanisation.

He also underscored that the demand and supply of affordable housing have increased, driven by tax sops and interest subsidies provided by the central government. He said there are big business opportunities in the rental housing.

He said the ministry would plan sound business models and allow extra floor area ratio to developers under this scheme so it would be a win-win situation for everybody.

Savills India CEO Anurag Mathur said the office, warehousing and online retail segments were the least impacted by Covid and would recover fast. He added that luxury residential and hospitality have been affected badly.

The housing and urban affairs ministry will launch a scheme to promote ARHC for migrant labour and urban poor to provide ease of living, access to dignified and planned housing close to their workplace in industrial sector as well as in non-formal urban economy.

The initiative is aimed at uplifting migrants, urban poor in industrial sector, service industry, manufacturing sector, institutions, and associations, among others.

The government will launch the scheme under PMAY(U) to provide ease of living at an affordable rent by using two models — using existing housing stock as ARHCs; and incentivising private/ public agencies for construction of ARHCs.


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