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New Delhi: The Centre has recently approved the Model Tenancy Act for circulation to all states and Union Territories for adaptation by way of enacting fresh legislation or amending existing rental laws suitably.
It was proposed in the Union Cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday (June 2, 2021) is going to help people who are looking to rent a Delhi Development Authority (DDA) flat in the national capital.
The Cabinet decision is going to help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth.
As per an official statement, the Model Tenancy Act aims at creating a vibrant, sustainable and inclusive rental housing market in India. It will also enable creation of adequate rental housing stock for all the income groups and will help in addressing the issue of homelessness.
The Model Tenancy Act will also enable the institutionalisation of rental housing by gradually shifting it towards the formal market. It will facilitate the unlocking of vacant houses for rental housing purposes.
This is to be noted that over 8,000 DDA flats are vacant due to very few purchasers. Henceforth, under the provisions of the new Model Tenancy Act, these flats can be put out for rent for needy people across Delhi and the country. It is also likely to boost private participation in rental housing.
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