Is There a National Rent Law in India? The Model Tenancy Act, Explained: An Illustrative Scenario in Hyderabad

The situation below is a composite illustration, not an account of an actual client matter, and is used here only to show how the law applies to a common set of facts.

The illustrative scenario

The question

A reader in this situation might ask:

How the general rule applies

There is no central tenancy law applicable across India. The Model Tenancy Act 2021, approved by the Union Cabinet on 2 Jun 2021, is only a model that each state may choose to adopt or adapt.

Generally speaking, as of this research, only four states had adopted the Model Tenancy Act: Andhra Pradesh, Tamil Nadu, Uttar Pradesh, and Assam.

The widely shared claim of a nationwide 2-month security deposit cap and a 60-day window to register a tenancy agreement comes from the Model Tenancy Act's own ss.11 and 4, and applies only where a state has enacted that Act — not across India generally. Fact-checks published in March 2026 confirmed there is no national rent law.

Only in states that have adopted the Model Tenancy Act 2021, which include Andhra Pradesh, Tamil Nadu, Uttar Pradesh, and Assam. There is no national law capping security deposits.

What often gets missed in situations like this

• Relying on social media posts claiming a '2-month deposit limit' as a national rule — it is only law in states that adopted the Model Tenancy Act.
• Assuming the state you live in has adopted the Model Tenancy Act without checking — most have not.
• Confusing the draft Registration Bill 2025 with an enacted law.

Where this scenario is set (Hyderabad)

• The High Court with jurisdiction is the Telangana High Court.
• Matters at the district level are generally handled at the Ranga Reddy District Court (L.B. Nagar) or Medchal-Malkajgiri District Court, depending on the area.
• The applicable rent law is the Telangana Buildings (Lease, Rent & Eviction) Control Act, 1960.
• Registration is handled through the Telangana Registration & Stamps Department portal.

As noted above, this scenario is a constructed illustration used to explain the general rule — it does not describe a real client, case, or outcome.

For the general rules, see Is There a National Rent Law in India? The Model Tenancy Act, Explained, The Delhi Rent Control Act's ₹3,500 Exclusion: What It Means, and When Is a Lease Required to Be Registered?.

If you would like this looked at against your own facts, a consultation is a reasonable next step.

This page is general information about the law in India and is not legal advice. The position can vary with the facts, so it is worth getting advice on your specific situation.