In a move with consequences for landlord-tenant ties in Chandigarh, the Centre has extended Assam Tenancy Act, 2021 to the Union Territory replacing the decades-old East Punjab Urban Rent Restriction Act, 1949, which had governed landlord-tenant relations in the city for over 75 years.The notification has been issued by the Ministry of Home Affairs under Section 87 of the Punjab Reorganisation Act, 1966, which empowers the Centre to extend laws from any state to the Union Territory of Chandigarh which does not have its own legislature.The extended law will be officially called the “Assam Tenancy Act, 2021 as extended to the Union Territory of Chandigarh” and will come into force from the date of its publication in the Gazette.Why the change?Chandigarh, as a Union Territory and the shared capital of Punjab and Haryana, had long been governed by the East Punjab Urban Rent Restriction Act, 1949 — a pre-independence-era legislation widely criticised for being outdated, tenant-protective to a fault, and lacking a modern framework for digital records, speedy dispute resolution, and balanced landlord-tenant rights.The Assam Tenancy Act, 2021, enacted by the Assam Legislative Assembly and assented to by the Governor on September 23, 2021, was seen as a far more contemporary and balanced law.The Central Government has adapted it for Chandigarh’s administrative context through a series of targeted modifications, replacing references to “State Government” and “State of Assam” with “Administrator” — the Administrator of Chandigarh, appointed by the President under Article 239 of the Constitution — and “Union Territory of Chandigarh” respectively throughout the Act.Features of the extended lawMandatory written tenancy agreementsAll tenancies must now be executed through a written agreement. Both landlord and tenant are required to jointly inform the Rent Authority about the tenancy within two months of signing the agreement, using the prescribed format in the First Schedule. If they fail to do so jointly, each party must inform the authority separately within one month thereafter. This creates an official, digitally verifiable record of every tenancy in Chandigarh.Digital platform for registrationThe Rent Authority is mandated to establish a digital platform within three months of appointment, enabling online submission of tenancy documents. Upon receiving information, the authority will issue a unique identification number to each tenancy and upload its details on its website within seven working days.Capped security depositsThe law places clear limits on security deposits. For residential premises, the deposit cannot exceed two months’ rent, while for non-residential or commercial premises, it cannot exceed six months’ rent. This addresses a longstanding practice of landlords demanding excessive deposits, particularly in Chandigarh’s competitive rental market.Structured rent revisionRent revision is to be strictly as per the terms of the tenancy agreement. A landlord can increase rent only after carrying out improvements or structural additions in the premises with the tenant’s prior written consent. In case of a dispute over rent revision, the Rent Authority has the power to determine the revised amount and the effective date.Clear division of maintenance responsibilitiesThe Second Schedule of the Act lays out a detailed division of maintenance duties between landlords and tenants. On the landlord’s side, the responsibilities cover structural repairs — except those necessitated by damage caused by the tenant — along with whitewashing of walls, painting of doors and windows, changing of plumbing pipes when necessary, and maintenance of internal and external electrical wiring.On the tenant’s side, the Act requires the tenant to periodically attend to smaller upkeep tasks such as replacing tap washers and taps, cleaning drains, repairing water closets, wash basins, bath tubs, and geysers, attending to circuit breakers, switches and sockets, repairing kitchen fixtures, replacing knobs and locks of doors, cupboards and windows, replacing fly-nets and glass panels, and maintaining any gardens or open spaces let out for their use.Protection against wrongful evictionA tenant cannot be evicted during the tenancy period except on specific grounds laid down in the Act. These grounds include non-payment of rent for two consecutive months, subletting without the landlord’s written consent, misuse of the premises, the landlord’s genuine need to carry out repairs or reconstruction that requires the property to be vacated, structural changes made by the tenant without written permission from the landlord, and the landlord’s requirement to carry out work following a court-directed change in land use. Importantly, tenants are given a one-month window to clear all arrears after receiving a demand notice, before any eviction order can be passed against them.Force majeure protection for tenantsIn cases of natural calamities — including war, floods, droughts, fires, cyclones, or earthquakes — where the premises become uninhabitable or the locality is severely affected, tenants enjoy specific protections under the Act. A tenant in such a situation is entitled to remain in possession for up to one month after the calamity ends on the same terms as the original tenancy agreement. The landlord is prohibited from charging rent for the period during which the premises remain uninhabitable.Further, if the premises cannot be restored to a habitable condition at all, the landlord is required to refund in full the security deposit and any advance rent paid, after making only such deductions as represent the tenant’s legitimate outstanding liabilities.Protection against landlord’s malpracticeThe Act prohibits landlords or property managers from withholding essential services in premises occupied by a tenant. Essential services under the Act include water supply, electricity, piped cooking gas, lighting in passages and stairways, lift access, conservancy, parking, communication links, sanitary services, and security fixtures.Where a landlord or property manager violates this provision, the Rent Authority may pass an immediate interim order directing restoration of services. Following a formal enquiry, the authority may also award compensation of up to two months’ rent to the affected tenant. Conversely, if the Rent Authority finds that a tenant filed a frivolous or vexatious complaint, it may levy a penalty of up to twice the monthly rent on the tenant.Enhanced rent for holdover tenantsIf a tenant refuses to vacate after the tenancy period ends or following a lawful eviction notice, the Act imposes a financial deterrent. Such a tenant becomes liable to pay double the monthly rent for the first two months of continued occupation, and four times the monthly rent for every month thereafter until possession is handed back to the landlord.Property manager regulationThe law formally recognises the role of property managers and rental agents, defining their duties and making them accountable to both the landlord and the tenant. A property manager who acts against the landlord’s instructions or violates their prescribed duties can be removed or penalised by the Rent Authority upon an application made by either the landlord or the tenant.Adjudication processThe Act establishes a three-tier dispute resolution mechanism replacing the current cumbersome judicial process. At the first level is the Rent Authority — an officer not below the rank of Tehsildar, appointed by the Deputy Commissioner of Chandigarh with the prior approval of the Administrator.Appeals from Rent Authority lie to the Rent Court, headed by an Additional Deputy Commissioner or an officer of equivalent rank, also appointed by the Deputy Commissioner with the Administrator’s approval. The Rent Court handles eviction applications and is required to decide cases involving misuse or abandonment within 30 days, general matters within 60 days, and cases relating to reconstruction, sale, or rent arrears within 90 days of filing.At the apex of the system sits the Rent Tribunal, comprising a District Judge or Additional District Judge appointed by the Administrator in consultation with the High Court. The Tribunal serves as the final appellate body and is required to dispose of appeals within 60 days of service of notice on the respondent.Adaptation for ChandigarhA notable adaptation for Chandigarh is that the Rent Authority must be an officer not below the rank of Tehsildar, as against the original Assam Act’s requirement of a Circle Officer, reflecting the administrative hierarchy of the Union Territory.End of 1949 lawThe East Punjab Urban Rent Restriction Act, 1949, which has been in force in Chandigarh since the city’s establishment, stands repealed with the commencement of this new law. However, all pending cases under the 1949 Act will continue to be heard and disposed of under the old law, ensuring no disruption to ongoing litigation.