Bhubaneswar: In a significant push to modernise urban housing and reduce disputes, the Odisha government has released the draft Odisha Urban Area Rent Control Act, 2026, which would make written tenancy agreements compulsory for all residential and commercial properties, effectively ending the prevalent practice of oral or handshake deals.
The Housing and Urban Development Department notified the draft legislation, inviting public suggestions and comments. If enacted, the new law would replace the decades-old Orissa House Rent Control Act, 1967, bringing the state’s rental framework in line with contemporary needs.
Key Provisions of the Draft Act
Under the proposed law, no property can be rented out or occupied without a formal written tenancy agreement detailing terms such as rent, tenure, and conditions. Landlords and tenants must jointly inform the designated Rent Authority and the local police station within two months of signing. In case of failure to do so jointly, both parties can submit details individually within one month. A dedicated digital platform is also envisaged for seamless registration and record-keeping, aiming to enhance transparency and ease of compliance.
The government has clarified that it will not regulate or fix rental amounts, leaving negotiations to mutual agreement between parties. This aligns with the spirit of the Centre’s Model Tenancy Act, 2021, which Odisha has adapted to suit local requirements.
Tenant Protections and Landlord Safeguards
A core highlight is stronger protection for tenants against arbitrary eviction during the agreement period. Evictions would only be permissible on grounds explicitly mentioned in the written contract or specified in the law, such as non-payment of rent, unauthorised subletting, property misuse, or needs for major repairs/redevelopment.
To address cases where landlords refuse rent or receipts, tenants can send payments via postal money order or other prescribed modes for two months. Persistent refusal would allow deposit of rent with the Rent Authority.
Security deposits are capped at two months’ rent for residential properties and six months’ for commercial ones, aiming to make rentals more affordable and prevent exploitation. The draft also outlines clear responsibilities for property maintenance, prohibits arbitrary disconnection of utilities like water and electricity, and restricts landlord entry, requiring at least 24 hours’ prior written or electronic notice, with no entry permitted before sunrise or after sunset except in emergencies.
Tenants, meanwhile, would be barred from structural alterations or permanent fixtures without written landlord consent. Frivolous complaints regarding essential services could attract penalties up to twice the monthly rent.
Speedy Dispute Resolution
The legislation proposes a three-tier mechanism—Rent Authority, Rent Court, and Rent Tribunal—for faster adjudication. Most disputes are targeted for resolution within 60 days, with eviction cases to be disposed of in 90 days.
Link to National Housing Initiatives
This reform forms part of Odisha’s commitments under the Memorandum of Agreement with the Ministry of Housing and Urban Affairs for Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0. The state is simultaneously working on affordable rental housing by repurposing vacant government buildings and other urban reforms.
Experts view the move as a step toward formalising the rental market, boosting investor confidence, improving legal certainty, and balancing interests of landlords and tenants in rapidly urbanising areas of Odisha. Once finalised after public feedback, the Act is expected to create a more accountable and dispute-free rental ecosystem. Public comments on the draft are being accepted as per the official notification from the department.
