Union Cabinet approved draft of Model Tenancy Act: Current Affairs Special Series

Team Adda247 and BankersAdda are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is Union Cabinet approved the draft of the Model Tenancy Act.

Union Cabinet approved the draft of the Model Tenancy Act

The Union Cabinet chaired by PM Modi has approved the draft of the Model Tenancy Act also known as ‘MTA’ for adoption and enactment by States and Union Territories to promote rental housing in the country. MTA envisages balancing the interests and rights of both, the owner and tenant, in an accountable and transparent manner. Ministry of Housing and Urban Affairs announced that rental housing is a preferred option for different segments of society such as poor migrants, labor, young workers, working professionals, and students in explanation of the need for MTA. Existing rent control laws are blocking the growth of rental
housing. The owners feel discouraged to rent out their vacant houses in fear of not getting the houses back. The Model Tenancy Act tends to cover urban as well as rural areas under its rules and regulation. It will be applied prospectively and it will not act on existing tenancies. After enforcement of this Act, no person shall let or take on rent any premises without an agreement in writing. The amount for rent and duration of tenancy would be fixed by mutual consent between the owner and tenant. This agreement would be submitted to Rent Authority.
A digital platform will be set up in the local vernacular (mother language) language or the
mother language of the State and Union Territory for this purpose. The MTS also provides for a time-bound and robust grievance redressal mechanism. The center assured that the Model Tenancy Act will make vacant houses available for rent as well as repose the confidence of investors in the sector.