C Shivakumar:
The model act drafted by the Central government has more owner-friendly features. For example, it allows the rental agreements to have a clause for periodic rental revision and also limits the right to possession of the tenant only to the time period mentioned in the agreement. Under the existing act, it is highly difficult to revise the rentals or get the tenant vacated, since the law gives much priority to right of possession of the tenant.
Chennai:
The state government is mulling on whether to enact the Model Tenancy Act proposed by Centre or just repeal the the 45-years-old Tamil Nadu Buildings (Lease and Rent Control) Act, which governs house rentals and tenancy.
The move comes after the Union government has urged the states states to amend the state rental acts on the lines of the Draft Model Tenancy Act 2015 by 2019. The Union Government has set amendment of the state’s rent control act on lines of the draft act as one of the conditions to avail funds for housing.
Officials in Housing department feel that the enactment of the Model Tenancy Act would require establishment of Rent control Authorities and Rent control Tribunals as provided in the Act which will lead to unnecessary administrative expenditure.
Sources said the provisions of the Model Tenancy Act can be met by merely repealing the existing Rent control Act since the law of contract is competent enough to deal with tenancy issues.
Officials feel that once the Model tenancy act is implemented then the rental lease agreements having a tenure of more than 11 months or having a monthly rental value of more than certain amount have to be compusarily registered in Tamil Nadu.
It is learnt that Tamil Nadu government officials are likely to hold discussions and take the view of law secretary before taking a final decision on whether to repeal the tenancy act or implement the Model Tenancy Act suggested by the Union government..
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