State to adopt Center's Model Tenancy Act to end disputes

Bengaluru: The State government on Thursday stated that it would adopt the Centre's Model Tenancy Act in order to end the relentless tenant-owner disputes and revitalise the rental housing sector.

Speaking to media persons, Revenue Minister R Ashoka said, "We are simplifying the current tenancy Act. Earlier, the government had a role in fixing the rent. Now, we have proposed that the rent should be fixed by both the parties, owner and tenant -- and after reaching an agreement, they need to finalise it legally and upload it onto the government's portal."

The Centre approved the Model Tenancy Act, aiming to bring about wide-ranging reforms, including setting up separate rent authorities, courts and tribunals in every district to protect the interest of both the owner and tenant.

States and Union Territories can adopt the Model Tenancy Act (MTA) by enacting fresh legislation or they can amend their existing rental laws suitably.

"In case of any dispute, the officials concerned will resolve it in 60 days. We're planning that the disputes should be settled within 60 days and even if anyone plans to postpone the hearing, there won't be more than three chances," he was quoted as saying by his office in a release. Noting that currently, around two to three lakh houses are vacant in Bengaluru alone, the minister said, "We hope that once this Act is implemented in the State, the owners will get their tenants while the rents may also come down." "This is just a proposal and we are expecting feedback from the public before we officially introduce this in Karnataka," he said.

The Union Cabinet in the first week of June had approved the Model Tenancy Act and sent it for circulation to all the States for adaptation by way of enacting fresh legislation or amending the existing rental laws suitably. Ashoka also said that the government plans to abolish the posts of four regional commissioners and instead establish a regional commissionerate at Bengaluru. "I have been thinking on these lines for the last six months as the regional commissioners' offices have turned out to be white elephants. For example, we have been spending crores of rupees on these offices. Each of these offices has more than 125 staff," he said. However, on the utilisation part, all the four regional commissioners' offices have received only 250 appeals so far, he said and added that this was nothing but wastage of resources. "We will take a call on this in the next fortnight..if we abolish the regional commissioners posts, then we can save a lot of money and the existing manpower can be redeployed to various deputy commissioners' offices across the state which is facing a severe shortage of manpower."