BHUBANESWAR: No residential or commercial property can be rented out or occupied without a written tenancy agreement under the state’s draft Odisha Urban Area Rent Control Act, 2026.
The draft legislation, notified by the Housing and Urban Development department, mandates that landlords and tenants jointly inform the proposed Rent Authority and the officer-in-charge of the local police station about the tenancy within two months of signing the agreement.
If they fail to do so jointly, both parties must separately submit the information within one month in the prescribed format.
The draft also protects tenants from eviction during the validity of a tenancy agreement unless otherwise agreed upon in writing or under provisions specified in the Act.
In cases where a landlord refuses to accept rent or issue a receipt, tenants can send the payment through postal money order or any other prescribed mode for two consecutive months. If the landlord still refuses to accept the rent, the tenant may deposit it with the Rent Authority.
The proposed law envisages a digital platform for registration and record management to improve transparency and ease compliance.
It seeks to balance the interests of landlords and tenants through a series of safeguards. Security deposits have been capped at two months’ rent for residential properties and six months’ rent for commercial establishments.
The draft clearly defines maintenance responsibilities, protects tenants from arbitrary disconnection of essential services such as water and electricity, and requires landlords to provide prior notice before entering rented premises except in emergencies. Landlords or property managers must give tenants at least 24 hours’ notice, either in writing or electronically, before entering the property. Entry before sunrise or after sunset will not be permitted except in emergency situations, it says.
Tenants, meanwhile, cannot make structural alterations or erect permanent structures without the landlord’s written consent. Those filing frivolous complaints before the Rent Authority alleging discontinuation of essential services may face a penalty of up to twice the monthly rent, the proposed law says.
To ensure speedy dispute resolution, the draft proposes a three-tier mechanism comprising a Rent Authority, Rent Court and Rent Tribunal. Most disputes are proposed to be resolved within 60 days, while eviction-related cases should be disposed of within 90 days.
The legislation also specifies grounds for eviction, including non-payment of rent, unauthorised subletting, misuse of the property, and the need for major repairs or redevelopment. At the same time, it seeks to prevent arbitrary eviction and protect tenants’ rights.
Officials said the proposed law is part of a series of urban reforms being undertaken under the Memorandum of Agreement signed with the Ministry of Housing and Urban Affairs for implementation of Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0.
As part of these commitments, Odisha has adapted the Centre’s Model Tenancy Act to suit state-specific requirements and proposed its enactment as the Odisha Urban Area Rent Control Act, 2026.