Gujarat Rent Bill 2026 Passed in State Assembly

Gandhinagar: The Gujarat Legislative Assembly on Friday passed the Gujarat Rent Bill-2026, paving the way for a new legal framework to regulate rental housing and commercial properties across the state. The new law will replace the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, and seeks to balance the rights and responsibilities of landlords and tenants while making rent-related disputes easier to resolve.

Urban Development Minister Kanubhai Desai, who introduced the Bill in the Assembly, said the existing rent law had several limitations and required periodic extensions. The new legislation, he said, has been framed keeping in mind Gujarat’s present-day economic, social and real estate requirements.

The Bill makes a written rent agreement mandatory for both residential and commercial properties. Details of the agreement will have to be jointly submitted to the Rent Authority, bringing rental arrangements within a formal regulatory framework.

Digital rental agreements and unique ID

Under the proposed digital governance system, the Rent Authority will establish a digital platform in Gujarati within three months. Each registered rent agreement will receive a unique identification number (ID), and the agreement details will be uploaded to the designated website. The system is intended to provide an easily accessible record that can serve as evidence for both landlords and tenants.

Security deposit capped at three months’ rent

The Bill also introduces a ceiling on security deposits to protect tenants. A landlord cannot demand a security deposit exceeding three months’ rent. After the tenant vacates the premises, the deposit is required to be returned within one month, after adjustment of any legitimate outstanding dues.

Three-tier system for rent disputes

One of the key provisions is the establishment of a three-tier dispute resolution mechanism comprising the Rent Authority, Rent Court and Rent Tribunal. The system is aimed at ensuring quicker disposal of disputes between landlords and tenants and reducing prolonged litigation.

The Bill also protects tenants against the arbitrary disconnection of essential services. A landlord cannot disconnect services such as electricity, water or gas to force a tenant to vacate the premises. In such cases, the Rent Authority can order immediate restoration of the services.

Grounds for eviction defined

At the same time, the legislation provides safeguards for landlords. Section 21 specifies grounds on which a landlord can seek eviction through the Rent Court. These include persistent non-payment of rent, causing damage to the property and subletting the premises without the landlord’s consent.

Protection in case of natural disasters

The Bill provides relief to tenants when a rented property becomes uninhabitable because of natural disasters such as floods, earthquakes or cyclones. In such circumstances, provisions have been made for a rent waiver or a reasonable opportunity to extend the rental agreement, depending on the circumstances.

Property managers brought under legal framework

Section 18 formally recognises property managers appointed by landlords. Their role and responsibilities will be defined under the legal framework, providing greater clarity where property owners appoint managers to handle rental properties on their behalf.

Certain properties exempted

Under Section 3, certain categories of properties have been kept outside the scope of the Act. These include government premises, service quarters provided by companies to their employees, and properties owned by religious or charitable institutions, Waqf Boards and public trusts.

However, such properties can be brought under the Act if the landlord and tenant mutually agree to do so.

Speaking in the Assembly, Desai said the new legislation was intended to create a fair and transparent rental system while protecting the legitimate interests of both sides.

“The Gujarat Rent Act is not merely a legal document but a vital link connecting the economic and social fabric of Gujarat,” Desai said.

The Gujarat Rent Bill-2026 was passed unanimously without opposition in the Gujarat Legislative Assembly. DeshGujarat