Chapter IV RENT AUTHORITY

Notice of revision of rent

1. (1) Where a tenancy agreement provides for the revision of rent, the landlord shall give a notice in writing to the tenant, at least three months before the end of the duration of the current rent, of his intention to revise the rent.
2. (2) Where a landlord exercises his right to increase the rent in accordance with the provisions of the tenancy agreement, and the tenant fails to give a notice of termination of tenancy, the tenant shall be deemed to have accepted the revised rent.

Rent Authority to fix or revise rent.-

1. (1) The Rent Authority, on an application by the tenant or landlord shall fix or revise, as the case may be, the rent payable for any premises:
   • (a) in case the premises is let out or sub-let, it shall be in accordance with the rent agreement;
   • (b) in case of any dispute between the landlord and the tenant regarding the rent to be paid, the Rent Authority shall fix the rent as per the prevailing market rate of similar premises in the locality.
2. (2) While fixing the rent for any premises, the Rent Authority shall take into account the prevalent market rent of similar premises in the locality.

Security deposit.-

1. (1) The security deposit to be paid by the tenant to the landlord shall not exceed two months' rent in case of residential premises and six months' rent in case of non-residential premises.
2. (2) The security deposit shall be refunded to the tenant at the time of handing over of vacant possession of the premises by the tenant after making due deduction of any liability of the tenant.

Receipt to be given for rent paid -

1. (1) Every tenant shall be entitled to receive a duly signed receipt from the landlord or his property manager for the rent paid to the landlord or his property manager, as the case may be, and in case of payment by cheque or digital mode, the bank acknowledgement or counterfoil shall be deemed to be a valid receipt.
2. (2) Where a landlord or his property manager fails to provide a valid receipt for the rent paid, the Rent Authority may, upon an application made by the tenant, impose a penalty, which shall not exceed double the amount of rent paid.

Deposit of rent with the Rent Authority -

1. (1) Where a landlord refuses to accept the rent and charges or refuses to sign a receipt or fails to provide a receipt for the rent and charges paid by the tenant, the tenant shall first send the rent and charges to the landlord by postal money order or any other method as may be prescribed, and if the landlord continues to refuse to accept the rent and charges or refuses to sign a receipt or fails to provide a receipt, the tenant may deposit the rent and charges with the Rent Authority in the prescribed manner.
2. (2) The Rent Authority shall, after receipt of the rent and charges from the tenant, enquire into the matter and if it is satisfied, then the rent and charges shall be deemed to have been paid to the landlord.
3. (3) The Rent Authority shall within fifteen days from the date of deposit of the rent and charges, send a notice to the landlord for receiving the amount deposited by the tenant.
4. (4) The landlord may receive the rent and charges deposited with the Rent Authority in such manner as may be prescribed.
5. (5) The tenant shall not be liable to pay any interest or penalty, provided that the tenant has paid the rent and charges in the manner provided in this section.