Assam Tenancy Act in Chandigarh: Some hail new law, others question logic behind ‘importing a law from a far-off state’

Appreciated the law, Ajay Jagga, member, Advisory Council to the UT Chandigarh Administrator, said, “The reform may also indirectly impact the mushrooming and largely unregulated PG culture in Chandigarh. With the introduction of a transparent tenancy regime and time-bound dispute resolution process, many property owners may now feel more confident in entering into lawful tenancy arrangements instead of relying upon loosely regulated PG models.”

Hailing the move “historic and a long-awaited step”, Jagga said, “The new law that replaced the East Punjab Urban Rent Restriction Act, 1949, which governed landlord-tenant relations in Chandigarh for more than seven decades, is the most balanced tenancy law.”

Citing the decision as a major structural reform in the field of urban housing, tenancy regulation, and dispute resolution, he said, “The move is expected to significantly reduce avoidable litigation, improve transparency in rental arrangements and restore confidence between landlords and tenants.”

The new law, based on the modern tenancy reform model approved by the Government of India, introduces a comprehensive legal framework that balances the rights and obligations of both landlords and tenants in a fair, transparent, and accountable manner, he said.

“The Union Cabinet, chaired by Prime Minister Narendra Modi, had approved the Model Tenancy framework for adoption by States and Union Territories to create a vibrant, sustainable and inclusive rental housing ecosystem in the country. The Ministry of Housing and Urban Affairs had then clarified that the purpose behind the reform was to unlock vacant houses, encourage rental housing and remove the fear among property owners regarding prolonged litigation and difficulties in recovery of possession,” Jagga said.

Raj Kumar, a city resident, said, “The implementation of the new law is a welcome and progressive development, particularly considering that thousands of properties in the city remain either underutilised or vacant because of apprehensions relating to tenancy disputes and cumbersome litigation.”

Residents regard the introduction of mandatory written tenancy agreements as one of the most significant aspects of the new framework. The law now requires landlords and tenants to formally execute agreements and notify the Rent Authority within the prescribed period — a step likely to bring substantial transparency and legal certainty to rental arrangements. Another feature is the creation of a dedicated three-tier dispute resolution mechanism comprising the Rent Authority, Rent Court and Rent Tribunal.

“The earlier system compelled parties to engage in prolonged litigation under traditional court procedures, often lasting several years. The new structure aims to provide comparatively faster adjudication, with limited adjournments and specialised forums dealing exclusively with tenancy disputes. The reform is also expected to strengthen the culture of mediation and negotiated settlements in tenancy matters. Across the world, mediation is increasingly recognised as the most effective mechanism for resolving landlord-tenant conflicts, preserving relationships and reducing judicial burden. Chandigarh now has an opportunity to channel a substantial number of tenancy disputes towards consensual resolution rather than prolonged adversarial litigation,” Raj Kumar added.

RK Garg, president of the Second Innings Association, however, asked why no consultation with stakeholders was done before implementing this law.

“Several laws recently implemented by the Chandigarh Administration have raised serious constitutional and administrative concerns. Laws from different states across India have been adopted almost verbatim, without adequately examining Chandigarh’s local conditions, social structure, or administrative requirements. It appears as though the Administration no longer possesses the ability or intent to frame laws suited to the unique needs of the Union Territory. Ironically, Chandigarh, often projected as a model city from an administrative perspective, is increasingly relying on a patchwork of borrowed legislation instead of developing an independent and coherent legal framework of its own. The result is a legal system that now resembles a mixture of laws taken from Punjab, Haryana, and even Assam, despite their vastly different socio-economic realities,” Garg rued.

“The fundamental question is whether Chandigarh’s geographical, social, urban and administrative conditions are comparable to those of Punjab and Haryana, or Assam. If not, what is the justification for mechanically importing and applying these laws here?” he said.

“Particularly concerning is the adoption of the Assam Tenancy Act, 2021. Assam’s demographic profile, land system, and tenancy structure are entirely different from Chandigarh’s. Chandigarh is a planned urban city with a completely distinct rental and housing ecosystem. The Chandigarh Administration must therefore clarify whether any local public consultation was conducted before adopting these laws. Was any study undertaken regarding their social and administrative impact? Most importantly, does Chandigarh still have any independent legislative vision of its own? Otherwise, the growing perception will only strengthen that the Chandigarh Administration is no longer engaged in policymaking, but has merely become an authority that imports laws from elsewhere and applies them without local adaptation,” Garg added.