Gujarat Rent Bill 2026 proposes new rent authority, caps security deposit at 3 months

Ahmedabad: The Gujarat government has proposed a new rental law that seeks to overhaul the state’s decades-old rent control framework, introduce dedicated rent authorities and courts, cap security deposits at three months’ rent, and provide a faster mechanism for resolving landlord-tenant disputes.

Where the proposed law will apply

The proposed law, applicable across Gujarat, covers residential and commercial premises let out under the Gujarat Comprehensive Development Control Regulations (CGDCR), 2017. However, industrial premises, government-owned properties, employee housing of universities and companies, and registered Waqf and public trust properties have been kept outside its ambit unless the parties mutually opt for the Act.

Written rental agreements to be mandatory

Under the proposed system, every tenancy will have to be backed by a written agreement and reported to the Rent Authority. The landlord and tenant will have to jointly submit information about the agreement within two months of its execution. If a joint submission is not made, either party can submit it separately within an additional month.

The Bill proposes a Rent Authority headed by an officer not below the rank of Deputy Collector or Assistant Municipal Commissioner, while Rent Courts would be headed by officers not below the rank of Additional Collector or Deputy Municipal Commissioner. Appeals would be heard by Rent Tribunals headed by District Judges or Additional District Judges appointed in consultation with the High Court.

Security deposit capped at three months’ rent

One of the key provisions for tenants is the cap on security deposits at three months’ rent. Landlords will have to refund the deposit within one month of receiving vacant possession, subject to permissible deductions.

Landlords and tenants get defined responsibilities

The Bill also lays down clear responsibilities for landlords and tenants. Landlords would be responsible for major structural repairs, painting or whitewashing, major plumbing work, and internal and external wiring. Tenants would generally be responsible for routine maintenance, including replacing taps, cleaning drains, repairing electrical switches and fixtures, and maintaining appliances.

Tenants would also receive protection against arbitrary disruption of essential services. Landlords and property managers would not be allowed to cut off services such as water, electricity, cooking gas, lifts, parking, or security. The Rent Authority could order restoration of such services and award compensation of up to two months’ rent.

The proposed law also seeks to provide greater privacy to tenants. Landlords would have to give at least 24 hours’ written notice before entering rented premises, with entry generally restricted to between sunrise and sunset, except in emergencies.

Specific grounds proposed for eviction

At the same time, the Bill gives landlords a defined legal route to recover possession of their properties. Eviction could be sought on specified grounds, including non-payment of rent for two consecutive months, unauthorised subletting, structural alterations, misuse of the premises, and certain cases of bona fide requirement.

Tenants who continue to occupy premises after the expiry or termination of the tenancy could be required to pay double the monthly rent for the period of unauthorised occupation.

Relief in case of natural disasters

The Bill also contains provisions dealing with natural disasters and force majeure events. In certain circumstances, tenants would receive a one-month extension of stay. If rented premises become uninhabitable because of a calamity, rent would not be payable for the period during which the premises remain uninhabitable. If the landlord fails to carry out the required repairs, advance rent and deposits would have to be refunded within 15 days.

Dedicated mechanism for faster dispute resolution

To speed up the process, the Bill proposes that disputes covered by the legislation be handled by the Rent Authority, Rent Courts, and Rent Tribunals, with the jurisdiction of ordinary civil courts barred in such matters. The authorities and courts would be required to endeavour to dispose of cases within 60 days, while certain eviction proceedings would have specific timelines ranging from 30 to 90 days. Appeals against orders would generally have to be filed within 30 days.

The government has framed the legislation broadly on the lines of the Model Tenancy Act, 2021, with the stated objective of modernising Gujarat’s rental market, protecting the interests of both landlords and tenants, and encouraging owners to bring vacant properties into the rental market.

The Gujarat Rent Bill, 2026, set to be introduced by Urban Development Minister Kanubhai Desai, proposes to repeal the Gujarat Rents, Hotel and Lodging House Rates Control Act, 1947, and replace it with a contract-based rental system. The Bill, Gujarat Bill No. 22 of 2026, is proposed to be called the Gujarat Rent Act, 2026, once it comes into force. DeshGujarat