NEW DELHI: The majority of landlords and real estate agents in the national capital lauded the Model Tenancy Act, which was accorded approval on Wednesday by the Union cabinet. Atul Bhargava, New Delhi Traders Association (NDTA), said the act would apply prospectively not retrospectively, which is one of the good provisions. “The new rent agreement will now be duly registered and both parties (tenants and property owners) will have to abide by the document. It is always good to have clarity on certain points and all parameters identified. I haven’t gone through the entire act yet though it will be good for new tenants,” said Atul.
Sanjay Bhargava, a shopkeeper in Chandni Chowk, where a significant number of properties are old tenancy arrangements, said that provision of rent tribunal in the act is certainly a breather. “A time-bound hearing of 60 days in case of any dispute is also a progressive step. Otherwise, it takes years in civil courts. It will serve the purpose and more rental properties will be available. Most people don’t keep tenants fearing that a dispute may arise. I think that this law will dispel that fear,” he said.
Anuj Puri, chairman of Anarock Property Consultants (APC), said that a sound rental policy is the need of the hour and if implemented in letter and spirit it would go a long way in easing housing shortages across the national capital region (NCR).
“Delhi-NCR has significant demand for rental housing because of two key reasons – the prevalence of prominent educational institutes and umpteen job opportunities. After the lockdown last year, we saw lakhs of immigrants return to their native places in the absence of housing. Availability of affordable rental housing would have helped at that time,” he said.
However, Sanjeev Mehra, president of Khan Market Traders Association, has a different opinion. He said that the new law would enhance confusion. “People will not be interested in giving their properties on rent after this. The capping of security deposits is an issue.
One of my properties is locked for 14 months and the tenant is absconding. I have approached every possible authority but to no avail. Several cheque bounce cases are pending in courts. Assurance of adjudication of a dispute in six months is not practically possible,” Mehra added.