Chandigarh New Tenancy Law 2026 Explained: Eviction Rules, Tenant Rights, What Changes
Are you a landlord or tenant in Chandigarh? Are you an NRI? Then this is a must-read. Because a Central Government notification has overhauled rent law in Chandigarh overnight. North Desk breaks down what changed, what it means for tenants and landlords, and why lawyers are challenging it in the High Court.
North Desk Correspondent
Chandigarh, May 17
What has happened?
On May 6, 2026, the Ministry of Home Affairs issued Chandigarh new tenancy law through a notification extending the Assam Tenancy Act, 2021 to the Union Territory of Chandigarh. In the same stroke, the East Punjab Urban Rent Restriction Act, 1949 — which had governed landlord-tenant relations in Chandigarh for over 75 years — was repealed.
The new law came into force from the date of the notification itself. Chandigarh tenants and landlords woke up to a completely different legal landscape without any transition period.
Why does this matter to ordinary people in Chandigarh?
Because the balance of power between landlords and tenants has shifted sharply — and quickly. The old law was designed in the 1940s and 1950s precisely to protect tenants from being thrown out arbitrarily, at a time when housing was scarce and landlords held all the leverage. The new law dismantles many of those protections.
If you live in a rented house or flat in Chandigarh, or if you are an NRI or retired government employee who owns property here that is rented out, the rules of the game have changed fundamentally.
What was the old law and what did it protect?
The East Punjab Urban Rent Restriction Act, 1949 gave tenants significant legal cover. A landlord could not simply ask a tenant to leave on a whim. To seek eviction, the landlord had to file a case before a Rent Controller — who was a judicial officer, typically a Subordinate Judge — and prove his or her reason for wanting the property back. The most common ground was personal necessity, meaning the landlord or family needed to move in themselves. But the burden of proving that necessity, with evidence, lay squarely on the landlord.
Even after a lease period ended, a tenant did not automatically become a trespasser. Under the old law, they became what is called a “statutory tenant” — a legal status that gave them continued protection and standing before the courts.
What has the new law changed on eviction?
This is the single biggest change in Chandigarh new tenancy law. Under Section 21(2)(g) of the Assam Tenancy Act, 2021 as now extended to Chandigarh, a landlord can seek eviction of a tenant simply by serving a written notice. There is no requirement to demonstrate or prove personal necessity. No evidence, no judicial hearing before eviction proceedings can begin — just a notice.
A writ petition in the Punjab and Haryana High Court challenging the new law has specifically flagged this provision as one of the most damaging changes. Their petition argues that this defeats the very object and purpose of rent control legislation and renders the protection available to tenants “illusory.”
What happens if a tenant refuses to leave after the notice?
This is where the financial pressure becomes severe. Under Section 23 of the new Act, if a tenant fails to vacate after the tenancy period ends or after receiving a termination notice, they become liable to pay:
- Twice the monthly rent for the first two months after the deadline, and
- Four times the monthly rent from the third month onwards, until they actually vacate.
To put this in concrete terms: if you are paying ₹20,000 per month and your landlord serves you notice, and you don’t leave in time, you owe ₹40,000 a month for two months, then ₹80,000 a month after that.
The lawyers challenging the law have pointed out in their petition that this penal rent provision is so harsh that it will effectively deter any tenant from staying on even when they have a legitimate dispute, effectively making the eviction process one-sided.
ALSO: Chandigarh tops India in Senior Citizen Crime: NCRB
What happened to the concept of the “statutory tenant”?
It has been removed in Chandigarh new tenancy law. Under the old East Punjab Urban Rent Restriction Act, 1949, once a lease expired, the tenant’s status automatically converted to that of a statutory tenant — meaning they retained legal protections and the landlord still had to go through proper legal process to remove them.
The new Act treats the end of the tenancy agreement as a hard stop. The tenant is expected to vacate, and if they do not, the punitive rent mechanism kicks in immediately. The legal buffer of statutory tenancy is gone.
What about retd. govt. employees, NRIs property in Chandigarh?
This is a nuance worth noting in Chandigarh new tenancy law. The old law — the East Punjab Urban Rent Restriction Act, 1949 — had specific provisions under Sections 13A and 13B that gave certain categories of landlords a fast-track route to reclaim their property. Section 13A covered retired government employees who needed their residential property back within a year of retirement. Section 13B covered Non-Resident Indians (NRIs) who returned to India and needed their property back.
These were explicit, dedicated protections that the old law had built in for these groups. The new Assam Tenancy Act does not carry equivalent provisions. The writ petition flags this as a significant omission that leaves a class of landlords — retirees and NRIs — worse off than before.
Any categories of properties left completely outside the new law?
Yes, and this creates what lawyers are calling a “legal vacuum.” The new Act specifically excludes from its definition of “premises”:
- Hotels
- Lodging houses
- Dharamshalas
- Inns
- Industrial premises
The old Act also excluded some of these, but the 1949 Act still governed them to some extent. Now, with the 1949 Act repealed and the new Act explicitly excluding these categories, there is no rent law governing tenancy disputes in hotels, lodges, dharamshalas, inns or industrial properties in Chandigarh at all. Anyone renting such a space currently has no statutory framework to turn to if a dispute arises.
Who is deciding rent disputes now — and why is that a problem?
Under the old law, Rent Controllers were judicial officers. In Chandigarh, these were Subordinate Judges of the First Class, and appellate authority rested with the District Judge — proper courts in the judicial hierarchy.
The new Act, that is, the Chandigarh new tenancy law appoints Tehsildars as Rent Authorities (Section 30) and Additional Deputy Commissioners as Rent Courts (Section 33). These are revenue and administrative officials, not judicial officers.
The lawyers challenging the law argue this is a clear violation of the constitutional principle of separation of powers — you cannot give judicial functions, which affect civil rights and property, to executive officers who have no judicial training, no security of tenure as judges, and no independence from the executive machinery.
Significantly, this is not a new argument in Chandigarh courts. In 2013, when Punjab tried something similar under the Punjab Rent Act 1995 — giving rent authority powers to Sub-Divisional Magistrates and Sub-Registrars — the Punjab and Haryana High Court issued notice on exactly the same grounds. Punjab had to amend the law in 2014 to restore judicial officers to these roles. The same battle is now being fought again over the new central notification.
Who has challenged this law and what are they asking for?
The Punjab and Haryana High Court Bar Association (Regd.) and the District Bar Association, Chandigarh have jointly filed a Civil Writ Petition in the Punjab and Haryana High Court challenging the Chandigarh new tenancy law. The hearing of the petition is likely to be take place this week.
Does the Central Government even had the authority to do this?
In Chandigarh new tenancy law, there is a legal argument about this issue, and it is significant. Section 87 of the Punjab Reorganisation Act, 1966 gives the Central Government power to extend laws already in force in the State of Punjab to the Union Territory of Chandigarh, with modifications. The Assam Tenancy Act, 2021 is a law in force in Assam — not Punjab. Lawyers argue that extending an Assam law to Chandigarh through a Punjab Reorganisation Act provision is simply not within the scope of what Section 87 permits.
What should tenants and landlords in Chandigarh do right now?
The Chandigarh new tenancy law is in force from May 6, 2026, unless the High Court stays its operation. Until a court order changes that, the Assam Tenancy Act 2021 as extended to Chandigarh is the applicable law.
If you are a tenant whose lease has expired or is about to expire, you should be aware that your legal standing has changed materially. If you receive a notice from your landlord, legal advice is now more important than it was before.
If you are a landlord, particularly an NRI or retired government employee, note that the fast-track eviction routes under Sections 13A and 13B of the old law no longer exist. Your options are now governed by the new Act’s general eviction framework.
Stories like this one — explained clearly, without the clutter — land on our WhatsApp Channel every evening. Follow North Desk and stay a step ahead on everything that matters in North India.
One Comment