MP set to be fifth state to adopt Model Tenancy Act, what exactly is MTA

Madhya Pradesh is preparing to become the fifth state to implement the Model Tenancy Act (MTA) which was approved by the Union cabinet in June 2020.

The process to implement the tenancy laws has been initiated and a draft has been prepared by the urban development department of the Madhya Pradesh government. The state government has recently sought public suggestions regarding the implementation of this law and this proposal is likely to be put before the cabinet soon.

Sources claimed that once the proposal gets approval from the cabinet, it can be introduced in the Monsoon Session of the Assembly. The Monsoon Session is scheduled in September

Officials who are associated with this development said the state has prepared the Madhya Pradesh Tenancy Act on the basis of the Model Tenancy Act, 2021 of the Centre. The officials said the intention of the government is that the tenancy market should grow and should be regulated by proper norms.

"There are many important aspects of this act, the most important of which is that the mutual agreement between the landlord and the tenant will now become a right. This agreement shall be within the legal framework," said an official in the urban housing department.

At present, such agreements are done on nominal stamp paper and they do not remain in any legal framework. After the MTA system is introduced, the tenant will not be able to occupy the house illegally.

Here are some highlights of MTA:- 

1. If someone wants to rent a house for living, then he will have to give two months advance payment and if he wants to take the place for business then he will have to give six months advance payment.
2. Similarly, the owner of the building will have to appeal to the competent authority to vacate the premises before the expiry of the contract.
3. If the contract is to be renewed, then a request has to be made one month before the expiry. The tenancy system will also be applicable to the premises of government buildings, universities, organisations, religious institutions.
4. The agreement will have complete details of the premises, Aadhaar number and there will be full information with the photos of both the tenant and the landlord, as per the draft prepared by the state government.
5. It said that the information about the agreement has to be given to the Gram Panchayat or Panchayat Samiti or Zila Panchayat or Municipal Corporation or Municipality or Nagar Panchayat or Development Authority or Housing Board within one month.
6. The competent entity will give a number to the tenancy agreement. It will be uploaded on the digital government system. Tenants will not be able to keep another tenant in the same premises. There will be no sub-agreement.
7. The security amount will be refunded to the tenant on the date of vacating the premises. There will be two copies of the agreement. One will remain with the owner and the other with the tenant. Both the owner and the tenant will be responsible for repairing common wear and tear.
8. If both refuse to do any work, then the owner will be able to get the repair done by deducting the security amount and the tenant after deducting the money from the rent.

Notably, over a year since the Union Housing and Urban Affairs Ministry circulated the Model Tenancy Act (MTA) in June 2021, only four states have so far revised their tenancy laws.

Earlier in July, Union Minister of State for Housing and Urban Affairs Kaushal Kishore replying to a query in the Rajya Sabha said, "As per information available with MoHUA, the States of Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Assam have revised Tenancy Acts on the lines of MTA."