TLI Staff
New Delhi: Among a slew of decisions, the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the Model Tenancy Act to help overhaul the legal framework with respect to rental housing across the country.
The move is expected to spur private participation in the country and facilitate unlocking of vacant houses for rental housing purposes.
“The Model Tenancy Act aims at creating a vibrant, sustainable and inclusive rental housing market in the country. It will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness,” said a press statement after the meeting.
The proposed legislative framework will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness. It will also enable institutionalisation of rental housing by gradually shifting it towards the formal market.
Union Minister for Housing and Urban Affairs Hardeep Singh Puri said that Model Tenancy Act provides model for urban and rural properties and template for residential and commercial properties.
“(It) will apply to future transactions and take people from informal to specific contract arrangement between landlord and tenant,” he said.
In another decision, the Cabinet also approved the signing of Memorandum of Cooperation (MoC) on Sustainable Urban Development between the Ministry of Housing & Urban Affairs, Government of India and the Ministry of Land, Infrastructure, Transport and Tourism, Government of Japan, in supersession of existing MoU of 2007 on Urban Development.
The MoC is expected to create employment opportunities in the areas of sustainable urban development, including Urban Planning, Smart Cities Development, Affordable Housing, (including rental housing), Urban Flood Management and Sewerage and Waste Water Management among others.
The cooperation under this MoC will take effect from the date of its signature and continue for a period of 5 years. Thereafter, it may be renewed automatically for another five years.
Memorandum of Understanding (MoU) between India and Maldives on cooperation in the field of sustainable urban development was also okayed by the Cabinet.
The top decision-making body of the government also cleared the MoU to be signed between the Ministry of Mines, Government of India and the Secretariat of Mining Policy of the Ministry of Productive Development of the Argentine Republic.