PRS · Ministry of Electronics & IT ·

Examining the Model Tenancy Act, 2021 and regulation of rental property in India

Distilled Policy Brief

  • The Union Cabinet approved the Model Tenancy Act, 2021 on June 2, 2021, proposing a three-tier adjudicatory mechanism consisting of Rent Authorities, Rent Courts, and Rent Tribunals for speedy dispute resolution.
  • Rental housing regulation falls under the State List of the Indian Constitution as land, land improvement, and control of rents, making the Model Act a non-binding framework that states and union territories may alter.
  • The Model Act requires landlords and tenants to submit Aadhaar numbers when intimating the Rent Authority, which may conflict with a 2018 Supreme Court judgment restricting mandatory Aadhaar usage to benefits funded by the Consolidated Fund of India.

🎯 Prelims High-Yield Examination Points

The Model Tenancy Act, 2021 is a advisory model framework as rent control, land, and land improvement fall strictly under the State List of the Seventh Schedule.

⚖️ Mains Analytical & Syllabus Linkages

Examine the potential of the Model Tenancy Act, 2021 in formalising India's urban rental housing market while addressing constitutional concerns regarding state jurisdiction and right to privacy.

🎯 UPSC Prelims Practice Drill

Polity & Governance

Consider the following statements regarding the Model Tenancy Act, 2021: 1. Rental housing and control of rents fall under the State List of the Seventh Schedule of the Constitution of India, making the Model Act a non-binding framework for States. 2. The Act proposes a three-tier adjudicatory mechanism comprising Rent Authorities, Rent Courts, and Rent Tribunals. 3. The Model Act requires both landlords and tenants to submit Aadhaar numbers when intimating tenancy agreements to the Rent Authority. Which of the statements given above are correct?

  • [A] 1 and 2 only
  • [B] 2 and 3 only
  • [C] 1 and 3 only
  • [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [D] 1, 2 and 3

All three statements are correct. Statement 1 is correct as rental housing and rent control fall under the State List, making the Model Tenancy Act a advisory framework for states to adopt or modify. Statement 2 is correct because it outlines a three-tier dispute resolution mechanism comprising Rent Authorities, Rent Courts, and Rent Tribunals. Statement 3 is correct as the Act requires mandatory submission of Aadhaar numbers by both landlords and tenants upon intimating tenancy details.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 2021

Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.

📚 Static Syllabus & Constitutional Linkages

Seventh Schedule Legislative Lists: Federal distribution of powers where land and rent control fall under Entry 18 of the State List, requiring individual state enactments for union model laws.
Right to Privacy and Proportionality Test: Fundamental rights under Article 21 as defined in K.S. Puttaswamy (2017) and the 2018 Aadhaar ruling, requiring legislative sanction, public purpose, and proportionality.