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Chandigarh UT to replace 1949 rent law with modern tenancy framework

Chandigarh administration plans to replace the East Punjab Urban Rent Restriction Act, 1949 with a framework modeled on the Assam Tenancy Act, 2021. The new system would require written tenancy agreements registered with a Rent Authority, establish market-linked rents, cap security deposits, and route disputes to a three-tier Rent Authority/Court/Tribunal. Officials say approval from the Ministry of Home Affairs is expected as early as next week.

Why It Matters

The reform could formalize Chandigarh’s rental market and shift disputes out of civil courts, affecting about half the population living in rental housing and aligning with broader housing reforms.

Timeline

1 Event

MHA approval expected for modern tenancy framework in Chandigarh

May 6, 2026

The Chandigarh administration is preparing to replace the East Punjab Urban Rent Restriction Act, 1949 with a framework modeled on the Assam Tenancy Act, 2021. Officials say Ministry of Home Affairs approval is expected as early as next week. The new system would require every tenancy to be in a written agreement and registered with a Rent Authority, create a verifiable record of rent, duration and terms, and move disputes from regular civil courts to a three-tier setup: a Rent Authority for registration and preliminaries, a Rent Court for adjudication, and a Rent Tribunal for appeals. Eviction would be regulated with clearly defined grounds (non-payment of rent, misuse of property, expiry of tenancy, or need to undertake construction). Tenants would be protected from arbitrary eviction and from withdrawal of essential services. Subletting would require the landlord’s consent and prior intimation to the Rent Authority, and entry into a rented home would require at least 24 hours’ notice. Security deposits would typically be capped at two months’ rent and refundable after deductions on vacancy. Overstays could incur penal rent, typically double the rent initially, rising to four times for continued occupation.