Gujarat Assembly passes Rent Bill 2026, caps security deposit at 3 months

Gujarat Assembly on Friday unanimously passed the Gujarat Rent Bill, 2026, a new legal framework to regulate rental premises and protect the rights of landlords and tenants. The Gujarat Rent Bill 2026 requires written rental agreements, caps security deposits at three months’ rent and sets rules for eviction and disputesUrban development minister Kanubhai Desai, who introduced the Bill, said the state had so far worked under the Mumbai-era rent law of 1947, which had to be extended from time to time and left both sides in legal tangles.

The new Gujarat Rent Act, he said, was not merely a legal document but a link in the state’s economic and social life. It would give the landlord a fair remedy and the tenant a respectful roof, bring transparency to the rental market and strengthen mutual trust, he added.

The Act will apply across Gujarat. After it takes effect, no premises may be let except under a written agreement. Landlord and tenant must jointly inform a new officer, the Rent Authority, within two months of signing. If they fail, each must inform the Authority separately within one more month.

The Rent Authority is a government officer not below the rank of Deputy Collector or Assistant Municipal Commissioner. That office must set up a digital platform, give every agreement a unique identification number and put the details on its website.

Rent will be the amount written in the agreement. A security deposit cannot exceed three months’ rent and must be returned within a month of the tenant handing back vacant possession, after lawful deductions, as per the new proposed law.

A tenant who stays on after the agreed term without renewal will have to pay double the monthly rent. In the event of a flood, earthquake, cyclone or other natural calamity, if the premises become uninhabitable, rent will not be charged until they are restored, and the tenant may also get a reasonable chance to extend the agreement.

The landlord may appoint a property manager — a person authorised in writing to collect rent, arrange repairs and deal with the tenant. The landlord cannot stop essential services such as water, electricity or piped cooking gas.

The landlord may enter the premises only after 24 hours’ notice and only between sunrise and sunset, except in an emergency. A tenant cannot be thrown out during the agreed term except through a Rent Court, and only on grounds set out in the law.

These include two months’ unpaid rent after notice, damage to the property, sub-letting without consent, or the landlord’s need to rebuild. Government buildings, company staff quarters, religious and charitable premises, Waqf property and public-trust property stay outside the Act unless both sides agree to come under it.

Disputes will be heard at three levels. The Rent Authority takes first filings. The Rent Court, headed by an officer not below Additional Collector or Deputy Municipal Commissioner, hears eviction cases. The Rent Tribunal, headed by a District Judge or Additional District Judge, hears appeals.

The 1947 rent law stands repealed for new lettings. Desai said the Bill would raise ease of living and discipline in the real-estate market.