Model Tenancy Tribunal Rules 2025: Transforming Vidarbha’s Rental Market

thenewsdirt
May 29
6 min read

The Model Tenancy Tribunal Rules 2025, notified by the Government of India, mark a significant step towards reforming the rental housing market.

In Vidarbha, a region in eastern Maharashtra known for its urban centres like Nagpur and semi-urban towns like Wardha, these rules aim to streamline tenancy disputes and formalise rental agreements.

This article explores the implementation of these rules in Vidarbha, focusing on the infrastructure for dispute resolution, urban rental patterns, relief for vulnerable groups, and the legal timeline governing tenancy laws.

Dispute Resolution Infrastructure in Vidarbha

The Model Tenancy Tribunal Rules 2025 build on the framework of the Model Tenancy Act (MTA) 2021, which introduced a three-tier quasi-judicial system comprising Rent Authorities, Rent Courts, and Rent Tribunals to resolve disputes within 60 days.

However, Maharashtra has only partially adopted the MTA 2021, and the Maharashtra Rent Control Act (MRCA) 1999 continues to govern most tenancy matters in Vidarbha.

District courts in Nagpur, Amravati, and Chandrapur handle rent disputes, as dedicated Rent Tribunals under the MTA framework are not yet fully established.

In Nagpur, the District and Sessions Court, located in the Civil Lines area and operational since 1971, adjudicates tenancy disputes under the MRCA 1999. The court is equipped with modern facilities and staffed with judges, clerks, and bailiffs to manage civil cases, including those related to rent.

In Amravati, a Rent Control Court was approved in 2018 to serve five districts in the Amravati division, but it operates alongside the District and Sessions Court, which has records dating back to 1854.

The Amravati court is similarly staffed but faces challenges due to the absence of specialised tribunals.

Chandrapur’s District and Sessions Court, functioning since 1959, also handles rent disputes under the MRCA 1999, with adequate infrastructure but no dedicated Rent Tribunal.

The lack of fully operational Rent Tribunals in Vidarbha highlights a gap in implementing the MTA 2021. District courts are functional, but judicial officers are overburdened, handling multiple case types, which can delay tenancy dispute resolutions.

The transition to the MTA’s three-tier system requires additional staffing and infrastructure, a challenge yet to be addressed in these cities.

Urban Rental Patterns in Nagpur and Wardha

Rental patterns in Vidarbha’s urban centres, particularly Nagpur and Wardha, reflect a mix of formal and informal arrangements.

In Nagpur, a major commercial and educational hub, formal written lease agreements are increasingly common, driven by real estate services and online platforms, which offer e-registration services.

These platforms indicate a trend towards formalisation, with written agreements providing legal clarity for both landlords and tenants.

The MRCA 1999 and MTA 2021 both emphasise written agreements, with the latter mandating them for enforceability.

In Wardha, a semi-urban town, rental practices are less formalised. Verbal agreements are more prevalent, especially among low-income tenants or in rural-urban fringe areas. While the MRCA 1999 recognises verbal agreements, they are prone to disputes due to the lack of documentation, particularly in cases involving eviction or non-payment of rent.

The MTA 2021’s requirement for written agreements could reduce verbal arrangements, but limited awareness and registration costs may pose barriers for low-income tenants in Wardha.

The shift towards formal agreements in Nagpur is supported by the city’s organised housing societies and growing real estate market.

However, specific data on the proportion of verbal versus formal agreements in both cities is unavailable, making it difficult to quantify the extent of informal arrangements.

The move to formalisation aligns with the MTA 2021’s goal of creating a transparent rental ecosystem, but its success in Vidarbha depends on effective implementation and public awareness.

Relief for Students, Migrant Workers, and Informal Tenants in Akola

In Akola, a city with a significant population of students, migrant workers, and informal tenants, the MRCA 1999 provides protections that indirectly support these groups.

The act caps rent increases at 4% per annum, requires court approval for evictions, and ensures tenants’ right to a fair hearing in disputes.

These provisions benefit informal tenants, including those with verbal agreements, though lack of documentation can complicate enforcement.

For students, two state schemes offer financial support that can help cover rental costs. The Educational Assistance to the 10th to 12th Students Scheme, managed by the Maharashtra Building and Other Construction Workers Welfare Board, provides ₹10,000 to children of registered construction workers scoring 50% or more in 10th or 12th exams.

The Maharashtra Student Scheme 2025 offers monthly stipends of ₹6,000–₹10,000 to students from economically weaker backgrounds, easing the financial burden of renting in Akola.

Migrant workers benefit from broader welfare measures. The Garib Kalyan Rozgar Abhiyaan, launched in 2020, provides employment opportunities to migrant workers, stabilising their income for rent payments.

The e-Shram Portal registers unorganised workers, linking them to welfare schemes such as food grain distribution. During the COVID-19 pandemic, Maharashtra established 262 relief camps across the state, providing food and shelter to migrant workers, including those in Vidarbha. These measures indirectly support rental obligations but do not directly address tenancy issues.

Informal tenants in Akola face challenges due to reliance on verbal agreements and limited legal awareness.

The MTA 2021’s emphasis on written agreements could exclude these tenants from protections if not accompanied by awareness campaigns. While the MRCA 1999 offers safeguards, the absence of targeted housing schemes for informal tenants limits direct relief.

Data on tenancy disputes from the Maharashtra Housing and Area Development Authority (MHADA) is scarce, as its focus is on housing allocation rather than dispute tracking. MHADA oversees housing development in Vidarbha through regional boards in Nagpur and Amravati.

Judicial records from district courts indicate that common disputes involve non-payment of rent, unauthorised subletting, eviction conflicts, and inheritance of tenancy rights.

A 2024 Bombay High Court case upheld eviction for non-payment and subletting, highlighting the prevalence of such issues.

Without specific statistics, the volume of disputes in Akola and other Vidarbha cities remains difficult to quantify.

National Context and Vidarbha’s Rental Challenges

Nationally, India’s urban rental market faces significant pressure due to rapid urbanisation and a shortage of affordable housing. The 2011 Census reported 1.1 crore vacant houses, many locked due to outdated rent control laws and landlord-tenant mistrust.

In Maharashtra, with 42% of its 112.37 million population living in urban areas, rental stress is particularly acute in cities like Nagpur.

The MTA 2021 addresses these issues by mandating written tenancy agreements, capping security deposits at two months for residential properties and six months for commercial ones, and establishing a three-tier dispute resolution system to reduce litigation.

Maharashtra’s partial adoption of the MTA reflects concerns about potential rent hikes, especially for tenants in older buildings under systems like pagdi, which remain outside the MTA’s ambit.

In Vidarbha, the rental market is shaped by its mix of urban and semi-urban areas. Nagpur’s growing real estate sector and educational institutions drive demand for formal rental agreements, while smaller towns like Wardha and Akola see a higher prevalence of informal arrangements.

The MRCA 1999’s protections, such as regulated rent increases and eviction safeguards, remain critical for tenants, but the transition to the MTA 2021’s framework is incomplete.

The Model Tenancy Tribunal Rules 2025 aim to bridge this gap by formalising dispute resolution, but their effectiveness in Vidarbha depends on establishing dedicated tribunals and increasing legal awareness among tenants.

The region’s rental challenges are compounded by the lack of specific data on tenancy disputes. Judicial records suggest that disputes over non-payment, subletting, and eviction are common, particularly in urban centres.

MHADA’s focus on housing development rather than dispute tracking limits access to comprehensive data, underscoring the need for better record-keeping to support the MTA’s implementation.

The Model Tenancy Tribunal Rules 2025 represent a pivotal moment for Vidarbha’s rental market, offering a framework to address longstanding issues of dispute resolution and tenancy formalisation.

As Nagpur, Amravati, Chandrapur, Wardha, and Akola navigate this transition, the region’s tenants and landlords await clarity on how these rules will shape their housing experiences.

The interplay of state and central laws continues to define Vidarbha’s rental landscape, with the promise of faster, fairer resolutions on the horizon.