Question

The main objective of the Model Tenancy Act, 2021 is

• A. to protect both landlords and tenants
• B. to discourage formal written rental agreements
• C. to abolish the concept of security deposit
• D. to implement the Act uniformly in all States and Union Territories

Hint:

The Model Tenancy Act, 2021 is a balancing act.
It seeks to build trust between landlords and tenants by creating a transparent, formal renting framework.

Answer 1

The Correct Option is A

Step 1: Understanding the Question:
The question asks for the primary goal and objective of the Model Tenancy Act, 2021, introduced by the Indian Government.
We need to evaluate how the Act balances the interests of the renting parties.


Step 2: Key Principle / Approach:
The Model Tenancy Act was drafted to balance the rights and interests of both landlords and tenants, establishing an accountable and transparent ecosystem for renting premises.


Step 3: Detailed Explanation:

• Prior tenancy laws in many Indian states were outdated, often heavily skewed in favor of tenants, which discouraged landlords from renting out their properties.

• To address this imbalance and unlock vacant housing stock, the Union Cabinet approved the Model Tenancy Act in June 2021 for adoption by states and union territories.

• The Act's primary objective is to protect the legitimate rights and interests of both landlords and tenants.

• It achieves this by mandating formal written rental agreements, setting limits on security deposits, and establishing a speedy dispute resolution mechanism (Rent Authority, Rent Court, and Rent Tribunal).

• It actively encourages formal written agreements rather than discouraging them, making option (B) incorrect.

• It does not abolish the concept of security deposits; instead, it caps them (e.g., maximum two months' rent for residential properties), making option (C) incorrect.

• While uniform implementation is desired, land and tenancy are state subjects, so the central model act itself cannot directly enforce uniform implementation without state-level legislation, making option (D) a secondary operational aspect rather than the main socio-economic objective.



Step 4: Final Answer:
The main objective of the Model Tenancy Act, 2021 is to protect both landlords and tenants, corresponding to Option (A).