Is There a National Rent Law in India? The Model Tenancy Act, Explained

This page sets out, in general terms, how is there a national rent law in india works under Indian law.

Why claims of a nationwide '2-month deposit cap' are incorrect, and which states have actually adopted the Model Tenancy Act.

The legal position

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.

Typically, a 'Registration Bill 2025' exists only as a draft released by the Department of Land Resources for public comment in May 2025; there is no confirmation it was introduced in Parliament.

Common pitfalls

A handful of issues come up repeatedly in practice.

• 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.

For related reading, see 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.

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.