UT officers said the move was aimed at improving ease of living, formalising rental arrangements and balancing the interests of landlords and tenants through a structured legal framework. (File photo)
In a major legal overhaul aimed at bringing greater transparency and ease to the rental housing sector, the Centre has extended the Assam Tenancy Act, 2021 to Chandigarh, replacing the decades-old East Punjab Urban Rent Restriction Act, 1949 with a modern framework governing residential and commercial rentals.
Notified by the Ministry of Home Affairs under Section 87 of the Punjab Reorganisation Act, 1966 through a Gazette notification issued on May 6, 2026, the new law introduces stringent penalties for tenants overstaying beyond the tenancy period, caps security deposits, makes written rent agreements mandatory and clearly defines the rights and duties of landlords and tenants.
UT officers said the move was aimed at improving ease of living, formalising rental arrangements and balancing the interests of landlords and tenants through a structured legal framework. The law is expected to significantly alter the way rental properties are managed in Chandigarh while reducing tenancy-related disputes.
One of the most striking provisions is a steep financial penalty for tenants who continue to occupy premises after the expiry of tenancy. Such tenants will be liable to pay double the monthly rent for the first two months of unauthorised stay and four times the monthly rent thereafter until the property is vacated.
For instance, if the agreed monthly rent is Rs 20,000, an overstaying tenant would have to pay Rs 40,000 per month for the first two months, rising to Rs 80,000 per month thereafter until vacating the premises. The provision is aimed at discouraging prolonged unauthorised occupation, a long-standing grievance of landlords under the earlier rent-control regime.
The law also makes written tenancy agreements compulsory. Landlords and tenants must jointly inform the Rent Authority about the agreement within two months of its execution. In case of failure to do so jointly, either party may separately submit the details within an additional month. A digital platform will also be created for online submission and management of rental documents, bringing tenancy agreements into a formal regulatory system.
To protect tenants from excessive upfront demands, the law places a cap on security deposits. For residential properties, landlords cannot charge more than two months’ rent as security, while for commercial or non-residential premises, the limit has been fixed at six months’ rent.
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The Act lays down clear responsibilities for both landlords and tenants regarding payment of rent, maintenance and repairs, while requiring both parties to maintain premises in good condition, barring normal wear and tear. It also bars landlords from arbitrarily cutting off essential services such as water, electricity, sanitation, security arrangements, parking access and lift facilities. In such cases, the Rent Authority can order immediate restoration of services and award compensation to the tenant.
The law further regulates landlord access to rented premises. Landlords or property managers can enter only after giving at least 24 hours’ notice, except in emergencies such as fire, flood or natural disasters. Entry will generally be permitted only between sunrise and sunset for repairs, inspection or other legitimate purposes specified in the tenancy agreement.
Subletting has also been tightly regulated. Tenants cannot sublet a whole property or any part of it without a supplementary written agreement and prior intimation to the Rent Authority.
To ensure quicker resolution of disputes, the law establishes a three-tier adjudication mechanism comprising the Rent Authority, Rent Court and Rent Tribunal. In Chandigarh, the Deputy Commissioner, with the approval of the Administrator, will appoint officers not below the rank of Tehsildar as Rent Authorities.
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The Act also spells out grounds for eviction, including non-payment of rent, misuse of premises, unauthorised structural changes, illegal subletting, reconstruction or redevelopment needs, and genuine requirement of legal heirs after the landlord’s death or sale of property where possession becomes necessary. However, tenants may avoid eviction in certain cases by clearing rent dues within the stipulated period after notice.
While the new law repeals the East Punjab Urban Rent Restriction Act, 1949 in Chandigarh, all cases already pending under the old law will continue to be heard and decided under the previous legal framework.
Hina Rohtaki is a Special Correspondent at The Indian Express, based in Chandigarh. She is one of the most prominent journalists covering the Chandigarh Administration, civic issues, and the unique political status of the Union Territory.
Professional Background
Experience: She has been in the field for over a decade and is known for her investigative reporting on administrative waste and urban governance.
Awards: She is a recipient of the prestigious Ramnath Goenka Excellence in Journalism Award, which was presented to her by the President of India in January 2020. She was also awarded the Jethmalani prize (The Will of Steel Awards) in 2025 in the Empowerment category for a series of articles that highlighted the struggles of Covid widows.
Core Beat: Her primary focus is the Chandigarh administrative structure, the Union Territory's financial management, and urban development projects.
Recent Notable Articles (Late 2025)
Her recent work highlights a focus on government accountability, administrative expenditures, and civic trends:
1. Investigative & Financial Reporting
"Fuelling power: Senior UT IAS officers guzzled petrol worth Rs 30 lakh in 2 yrs" (Dec 14, 2025): An investigative report detailing the high fuel bills of top bureaucrats, including the Finance Secretary and Chief Secretary’s staff.
"Admn spends Rs 1.5 crore on dismantling road railings and fixing again after increasing height" (Dec 8, 2025): Highlighting administrative waste on "non-viable" solutions for pedestrian control.
"Chandigarh’s finances under ministry’s watch now" (Nov 27, 2025): Reporting on the new requirement for MHA approval for all new projects in the UT.
2. Governance & Constitutional Status
"What will it mean for Chandigarh if it is brought under Article 240?" (Nov 24, 2025): An "Explained" piece on the potential constitutional shift that would grant the President more power over the UT's governance.
"MP Manish Tewari moves Bill seeking directly elected Mayor with 5-year tenure" (Dec 6, 2025): Covering the legislative push to reform Chandigarh's municipal leadership structure.
"No proposal to increase Mayor's term in Chandigarh by 5 years: Centre" (Dec 10, 2025): Reporting on the Union government's response to demands for a longer mayoral term.
3. Urban Infrastructure & Environment
"Chandigarh admn cuts power to India's tallest air purifier, asks firm to dismantle it" (Nov 17, 2025): A critical report on the failure of a high-cost environmental project deemed "of no use" by experts.
"UT rethinks 24/7 water supply project as costs soar" (Nov 26, 2025): Detailing the financial challenges and delays in modernizing the city's water network.
"Centre 'obfuscating, covering up' MC's shifting deadlines for clearing Dadu Majra dump" (Dec 12, 2025): Reporting on the ongoing controversy surrounding the city's major waste dump.
4. Lifestyle & Local Trends
"Chandigarh turns into a Thar city as women fuel the surge" (Dec 2, 2025): A feature on a unique automotive trend in the city, with a record 600 registrations by women drivers this year.
"After fivefold spike in 2023, EV sales struggle to pick pace in Chandigarh" (Dec 2, 2025): Analyzing the slowdown in electric vehicle adoption despite previous surges.
Signature Beat
Hina is known for her meticulous tracking of RTI (Right to Information) data to expose administrative inefficiency. Her "Ground Zero" reporting on the Dadu Majra garbage dump and her scrutiny of the Chandigarh Smart City projects have made her a key figure in the city’s civil society discourse.
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