Tenant Rights Under the Model Tenancy Act — Maharashtra

Tenant rights in Maharashtra are governed by a dual system. In Greater Mumbai, the old Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 still applies to many older tenancies (premises built before 1966 or with rent below certain thresholds). Outside Mumbai, the Maharashtra Rent ControlA local law that caps how much a landlord can raise rent each year on covered units. Rent control exists in a limited number of US cities and states and usually applies only to older buildings. Act, 1999 governs tenancies.

Under both laws, tenants in rent-controlled premises enjoy strong protections against arbitrary eviction and rent increases. Landlords can only evict for specific reasons listed in the Act, such as non-payment of rent, subletting without permission, nuisance, or the landlord's bona fide personal need. Standard rent can only be increased through the Rent Controller's order.

For newer tenancies (post-1999 outside Mumbai, or properties with market-rate rent), the terms of the lease agreement apply, but the landlord must still follow the proper legal process for eviction through civil courts. The Model Tenancy Act, 2021 (central) has been notified but Maharashtra has not yet adopted it as of 2024, so the existing state rent controlA local law that caps how much a landlord can raise rent each year on covered units. Rent control exists in a limited number of US cities and states and usually applies only to older buildings. laws remain in force.

Security deposits — custom, not statute: Maharashtra does not cap security deposits by statute for market-rate tenancies. Practice in Mumbai is typically 6-12 months of rent for residential leases, dropping to 2-3 months in Pune, Nagpur, and most other cities. The deposit must be refunded at the end of the tenancy after deducting only documented damages and unpaid rent. Holding the deposit beyond 30 days without a written accounting exposes the landlord to a civil suit with interest and costs. Leave-and-licence agreements must be registered under Section 55 of the MRCA — an unregistered agreement is admissible only in favour of the tenant, not the landlord.

Pagdi (pugree) tenancies: In older Mumbai buildings, the pagdi system gives the tenant a heritable, transferable tenancy in exchange for a lump-sum premium paid at inception. Monthly rent remains nominal, often Rs 200-2,000 even in central Mumbai. Pagdi tenants can sell or transfer tenancy with landlord consent and the long-standing split is 67% to the outgoing tenant, 33% to the landlord. This tenancy survives the landlord's sale of the building and cannot be extinguished by conversion to ownership without the tenant's voluntary participation in a redevelopment scheme.