Bhubaneswar: The state government is set to introduce a new legislation aimed at regulating tenancy through mandatory written agreements, capping security deposits and creating dedicated rent authorities and courts for speedy dispute resolution. The draft Odisha Urban Area Rent Control Act, 2026, released by the housing and urban development department on Saturday, seeks to replace the existing Orissa House Rent Control Act, 1967, and its subsequent amendments, signalling a major shift in how urban rental housing is governed in the state.
The draft rule, however, hasn’t mentioned anything about the amount of rent the landlord can charge, leaving it to the prerogative of the tenant and landlord as per their written agreement.
New Institutional Framework for Dispute Resolution
The new law proposes an institutional framework comprising rent authorities, rent courts and rent tribunals to handle disputes, with an emphasis on time-bound adjudication.
Tenant Safeguards Against Eviction
The draft has also incorporated some key safeguards for tenants regarding rent defaults. Under the proposed law, no eviction order will be passed if a tenant clears arrears, charges and interest within one month of receiving a demand notice. However, stricter rules apply after relief is granted: if a tenant fails to pay rent for two consecutive months in the same year, they lose the right to seek such protection again. This balances tenant security with landlord rights.
Mandatory Written Agreements and Digital Registration
Another key provision in the draft mandates that all rental agreements must be executed in writing and jointly submitted to a designated rent authority and local police within a prescribed timeframe, making registration and documentation compulsory for both landlords and tenants. The authority will also introduce a digital platform to record tenancy details and issue unique identification numbers for agreements.
Balancing Interests: Deposit Cap and Rent Revision
The proposed law has sought to balance interests by clearly defining the rights and obligations of landlords and tenants. It caps security deposits at two months’ rent for residential properties and six months for non-residential premises, while allowing rent revision as per mutually agreed terms in the tenancy contract.
Structured Grievance Redressal System
To address disputes, the draft provides for a structured grievance redressal system. Rent authorities will handle specific matters such as rent revisions and service-related issues, while rent courts and tribunals will adjudicate eviction and appeals. Cases are expected to be disposed of in a time-bound manner and in some instances, within 60 to 90 days.
Penalties for Overstaying and Service Disruptions
It further discourages tenants from overstaying by imposing penal rent up to four times the monthly amount in case of refusal to vacate after expiry. Additionally, the draft prohibits withholding of essential services such as water, electricity and sanitation and prescribes penalties for violations. It also codifies responsibilities for maintenance and repairs between landlords and tenants, aiming to reduce ambiguity and disputes.
