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

What follows is a fictional, illustrative scenario intended only to demonstrate how the general rules above apply to a typical set of facts. It does not describe a real person, client, or case.

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.

Typically, 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 (Chandigarh)

• The High Court with jurisdiction is the Punjab & Haryana High Court.
• Matters at the district level are generally handled at the Chandigarh District Courts Complex, Sector 43.
• The applicable rent law is the Assam Tenancy Act, 2021, as extended to UT Chandigarh in 2026.
• Registration is handled through NGDRS.

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?.

Where this applies to a live matter, it is usually worth discussing it in a consultation before acting.

The content above explains how the law generally works; it is not legal advice and should not be treated as a substitute for advice on your particular facts.