NRI Property Lawyers for Landlord Tenant Dispute in Punjab, India
Many NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin) invest in properties in India, either as a long-term investment or with the intention of returning to India at some point. Instead of keeping properties vacant, renting them out has become a popular option, especially as rental prices in major Indian cities continue to rise. However, many NRIs shy away from renting out their properties due to concerns about tenants who refuse to vacate after the lease expires. While there is no foolproof way to ensure landlords are protected from tenants who overstay, there are several measures landlords can take to safeguard their property. One such method is using a Leave and Licence Agreement, which provides more legal protection for landlords than a standard rental agreement.
Two Common Types of Property Rental Agreements in India
1. Rental Lease Agreement
2. Leave and Licence Agreement
While both rental lease agreements and leave and licence agreements serve the purpose of renting property, they differ significantly when examined from a legal perspective. In simple terms, a rental lease agreement typically transfers an interest in the property to the lessee, whereas a Leave and Licence Agreement does not transfer any interest in the property to the tenant. Instead, it grants the tenant a license to occupy the property for a specified period. Leave and Licence Agreements are often preferred by landlords as they offer better protection, and rent control laws do not apply to them. The eviction process under a Leave and Licence Agreement is governed by the Indian Easements Act. NRIs who intend to rent out their properties should consider using a Leave and Licence Agreement for added protection against tenant disputes.
Common Reasons for NRI Landlord-Tenant Disputes
NRI landlords in India often face disputes with tenants due to the following common reasons:
- Non-payment or insufficient payment of rent by the tenant
- Sub-letting of the property without prior permission from the NRI landlord
- Illegal or commercial use of residential property
- Damage or alterations to the property by the tenant
- Involvement of the tenant in illegal activities on the property
- Violation of terms and conditions specified in the rent or lease agreement
If any of the above issues arise, the NRI landlord may issue a legal notice for eviction to the tenant. If the tenant fails to respond or refuses to vacate the property, the NRI may need to file an eviction petition in the appropriate court to reclaim possession of the property.
Legal Provisions for NRIs under the East Punjab Urban Rent Restriction Act 1949
East Punjab Urban Rent Restriction Act 1949 - Section 2 (dd) defines a "Non-Resident Indian" (NRI) as a person of Indian origin who is permanently or temporarily settled outside India for employment, business, or any other purpose that indicates their intention to stay outside India for an uncertain period.
The Act also includes a provision in Section 13-B that grants an NRI landlord the right to recover immediate possession of residential or commercial property under certain conditions:
Section 13-B - Right to recover immediate possession of rented property: If an NRI owner returns to India and requires the property for personal use, they may apply to the Controller for the immediate possession of the property. However, this right is available only after five years of ownership and can be invoked only once during the owner's lifetime. NRIs can apply to recover possession of one property for personal use, provided they are returning to India for permanent residence.
Additionally, if the NRI recovers possession of the property, they are prohibited from selling or renting out the property within five years of taking possession. If this condition is violated, the tenant may apply to the Controller for restoration of possession of the property.
Punjab Rent Control Act 1995 and its Amendments for NRIs
The Punjab Rent Control Act 1995 provides further protection for NRIs when dealing with tenant disputes. Under Section 24 (3), NRIs returning to India for permanent residence have the right to apply for the immediate possession of residential or non-residential properties rented out by them. The Rent Control Act has also been amended to offer greater protection and ease of eviction for NRIs.
The amended Punjab Rent Control Act requires that all rental agreements be registered with the Rent Registering Authority. This change has given NRIs more power to evict tenants, especially in cases where the tenant is in violation of the terms of the lease or has been occupying the property unlawfully. The Punjab & Haryana High Court, in the case of Krishan Kumar & Others Versus Kamla Devi, has clarified the rights of NRIs under both the old and new versions of the Rent Act, offering further legal clarity in landlord-tenant disputes.
We strongly recommend that all NRI landlords seek legal advice before entering into any rental agreements. This can significantly reduce the risk of tenant-related disputes and ensure that landlords are fully protected under Indian property law.
As navigating landlord-tenant laws in India can be overwhelming for NRIs, it is advisable to hire a professional legal firm to handle disputes and provide expert guidance. Our legal team specialises in NRI property disputes and landlord-tenant issues, offering comprehensive legal services ranging from litigation to out-of-court settlements. We take a client-centric approach, ensuring that the unique needs of NRIs are always met with the highest standard of legal representation.
If you have further questions or need advice or legal assistance, feel free to Contact Us or reach out by Email Us. Alternatively, you are welcome to book an Appointment or send us an online Legal Query.
