Chandigarh, May 8 -- The Centre has extended the Assam Tenancy Act, 2021, to Chandigarh in a move aimed at regulating the rental housing sector in the city and fostering a market-driven system, determined by a mutual agreement between tenants and landlords, and ensuring timely dispute resolution. The notification, issued under the Punjab Reorganisation Act, 1966, replaces the East Punjab Urban Rent Restriction Act, 1949, a law crafted in an era of acute housing shortage. While it once offered strong protections to tenants, officials say it produced a system marked by prolonged litigation, informal tenancies and reluctance among landlords to rent out property. At the core of the new law is a requirement that all tenancies be formalised through written agreements and registered with a designated rent authority, creating a verifiable record of rent, duration and terms. These agreements will form the basis for dispute resolution, a shift from the informal arrangements that have often led to ambiguity over rent, deposits and maintenance responsibilities. "This is a welcome step that will help bring much-needed regulation to the rental market," said Baljinder Singh Bittu, chairman of the Federation of Sector Welfare Associations of Chandigarh (FOSWAC). "For years, both landlords and tenants have struggled - owners often faced difficulty in getting properties vacated, while tenants dealt with uncertainty. A clearer, rule-based system should benefit both sides." Cases will move out of conventional civil courts into a three-tier mechanism comprising a rent authority, rent court and rent tribunal. Proceedings are designed to be summary in nature, relying largely on affidavits and documents, with an emphasis on resolving cases within defined timelines - often within 60 days - and limiting adjournments up to three. The city has, in the past, seen several rent disputes which have continued for decades. In one such case, a tenant occupying a commercial property since the 1970s, was evicted in 2025, after a Punjab and Haryana high court ruling. For landlords, some of the most consequential changes lie in enforcement. Tenants who fail to vacate after the end of a tenancy can be charged penal rent - typically double the monthly rent initially, rising to four times for continued occupation. Eviction is permitted on grounds such as non-payment of rent, misuse of property, expiry of tenancy or the need for repairs or reconstruction. Security deposits are capped - generally at two months' rent for residential properties and must be refunded after possession is returned, with interest payable in case of delay. Landlords are barred from withholding essential services such as water and electricity, and tenants retain the right to contest eviction while continuing to pay rent during proceedings as directed by the Rent Court. Everyday interactions between landlords and tenants are also more tightly defined. Entry into a rented home requires prior notice, typically at least 24 hours, except in emergencies. Subletting is restricted without consent and formal intimation, and tenants are prohibited from making structural changes without approval. At the same time, landlords may approach the rent court to undertake repairs or improvements if access is denied. The law goes further in attempting to formalise the rentalecosystem. It envisages a digital system for recording tenancy agreements, assigning unique identification numbers and maintaining accessible records, measures officials say could reduce reliance on undocumented arrangements. It also clearly divides maintenance responsibilities, placing structural repairs on landlords while assigning routine upkeep totenants....