Pre-legislative scrutiny: How can citizens be more actively involved?

Tonusree - December 18, 2010

In recent public discourse over lobbying, two issues that have underscored the debate are:

Greater transparency in the policymaking process, and
Equality of access for all stakeholders in engaging with the process.

There is a need to build linkages between citizens and the policy making process, especially by strengthening scrutiny before a Bill is introduced in Parliament. Currently, there is no process established to ensure pre-legislative scrutiny by the citizenry. Other democracies incorporate several measures to enhance public engagement in the pre-legislative process. These include:

Making all Bills available in the public domain for a stipulated period before introducing them in the legislature. This includes, publishing these Bills in forms (language, medium etc) that are accessible to the general public.
Making a report or Green paper on the legislative priorities addressed by the Bill available for citizens.
Forming adhoc committees to scrutinise the Bill before it is piloted in the House.
Having Standing Committees examine the Bill before introducing it in the House.
Providing a financial memorandum for each Bill, which specifies the budgetary allocation for the process/bodies created by the Bill.
Creating online fora for discussion. For the sections of the stakeholders who have limited access to the internet, efforts are made to proactively consult them through other media.
Expanding the purview of citizens’ right to petition their representatives with legislative proposals.

There are several instances, in the last few years itself, wherein civil society groups have played an active role in the development of pre-legislative scrutiny in India.

Public consultation with cross-section of stakeholders when drafting a Bill: The Right to Information Act is seen as a landmark legislation when highlighting the role of civil society actors in the drafting of a Bill. It also serves as a prime example for how it the movement mobilised widespread public opinion for the Bill, bringing together different sections of the citizenry.
Public feedback on draft Bills: In several cases, after a Bill has been drafted the concerned ministry or public body publishes the Bill, inviting public comments. The Right to Education Bill, the National Identification Authority Bill and the Draft Direct Taxes Code Bill 2009 are recent cases in point. These announcements are made through advertisements published in newspapers and other media. For instance, the government has recently proposed to amend the rules of the RTI and has invited public feedback on the rules by December 27.
Engaging with legislators: It is important to expand engagement with lawmakers after the Bill has been introduced in Parliament, as they will determine what the law will finally contain. This is done by approaching individual legislators or members of the committee which is likely to examine the legislation. Standing Committees invite feedback on the Bill through newspaper advertisements. For instance, the Standing Committee examining the Civil Nuclear Liability Bill heard testimonies from journalists, civil society groups, thinktanks, public bodies and government departments.

The role of the media and channelising the potential of the internet are other key approaches that need to be explored. Other examples and channels of engagement with the legislative process are illustrated in the PRS Primer on Engaging with Policymakers

Legislation

Examining the Model Tenancy Act, 2021 and regulation of rental property in India

Shruti Gupta - June 10, 2021

The Union Cabinet approved the Model Tenancy Act, 2021 on June 2, 2021, for adoption by state and union territory governments. The Model Act has three primary objectives. First, it aims to regulate renting of residential and commercial premises by establishing conditions for tenancy, eviction, and management of the property. Second, in regulating tenancy, it proposes mechanisms to balance and protect the rights of landlords and tenants. Last, it proposes a three-tier adjudicatory mechanism consisting of Rent Authorities, Rent Courts, and Rent Tribunals for speedy adjudication of tenancy related disputes.

However, note that rental housing is regulated by states as land, land improvement, and control of rents falls under the State List of the Indian Constitution. This Model Act is only a proposed framework that states and union territories may alter when passing their own tenancy laws.

In this blog, we provide a background on the rental housing market and explain some issues with the 2021 Model Act.

Need for the Act

In India, 95% of households in rural areas live in self-owned housing, and rental housing is a predominantly urban phenomenon. Between 1951 and 2011, the urban population in India grew by six times and as of 2011, comprises 31% of the total population. This is projected to grow to 40% by 2036. However, the share of persons living in urban rental accommodation has decreased from 58% to 27% between 1961 and 2011. The 2015 draft National Urban Rental Housing Policy noted that urban areas face a significant housing shortage and stated that this cannot be addressed by home ownership. In 2012, a Technical Group studying urban housing shortage estimated the urban housing shortage to be at 1.9 crore units. The 2011 Census noted that between 6.5 crore to 10 crore people (17% to 24% of the urban population) live in unauthorised housing in urban areas. The Economic Survey (2017-18) noted that rental housing is a key way to address informality and shortage. It stated that rental housing enables mobility and affordability for low-income segments, who may not be able to purchase housing. It also observed that a significant portion of urban rental housing stock is vacant, attributing it to unclear property laws, poor contract enforcement, and rent control laws.

State governments regulate rental housing through various legislative tools including rent control laws. To prevent landlords from charging exorbitant rent and ensure affordable housing, these laws specify a ceiling on rent and put conditions on eviction of tenants. The 2015 draft Policy noted that rent control laws discourage private investment in rental properties. It observed that rent control laws also skew arrangements towards tenants and lead to more litigation. This has eroded the trust of landlords in the regulatory system. A significant share of the rental demand is addressed through alternate arrangements such as leave and license agreements and informal leases.

A model law to regulate tenancy was first proposed in 1992. The first draft Model Tenancy Act was released in 2015, which was adopted by Tamil Nadu. However, as of 2021, 20 states including Karnataka, Maharashtra, and West Bengal continue to have rent control laws. A few states including Madhya Pradesh, Jharkhand, and Chhattisgarh have repealed their rent control laws.

Besides its key objectives, the Model Act also seeks to ensure affordability, formalisation and increase private investment in the rental housing market. The framework proposed under the Model Act may address some of these concerns. However, experts have recommended supplementing this with other policy initiatives to meet these objectives. For instance, a 2012 Technical Group observed that about 96% of the urban housing shortage pertains to the Economically Weaker Sections (EWS) and Lower Income Group (LIG) categories. The 2015 draft Urban Rental Housing Policy noted that a repeal of rent control laws may increase private investment and availability of rental housing. However, it has recommended several other measures to ensure affordability of rental housing. These include: (i) provision of incentives such as tax exemptions and subsidies to tenants and home owners, (ii) encouraging public-private partnerships and residential rental management companies, and (iii) enhancing access to finance within the EWS and LIG sectors.

Concerns for right to privacy

The Model Act requires all landlord and tenants to intimate the Rent Authority about a rental agreement with a prescribed form. The form requires both the tenant and the landlord to submit their Aadhaar numbers and attach self-attested copies of the card with the form. This may violate a 2018 Supreme Court judgement, which states that requiring Aadhaar card or number can be made mandatory only for expenditure on a subsidy, benefit or service incurred from the Consolidated Fund of India. Registering a tenancy agreement does not entail these, therefore making Aadhaar number mandatory for registering a tenancy may violate the judgement.

The Model Act also states that tenants and landlords will be provided with a unique identification number after registering a rental agreement. Details of the agreement along with other documents will be uploaded on the Rent Authority’s website. It is unclear if personal details of the parties such as PAN and Aadhaar number, which must be submitted along with the agreement, will also be made available publicly. If these are shared on the website, this may violate the right to privacy of the involved parties. The Supreme Court has included the right to privacy as a fundamental right. This right may be infringed only if three conditions are met: (i) there is a law, (ii) the law achieves a public purpose, and (iii) the public purpose is proportionate to the violation of privacy. Sharing personal information of individuals may not serve a public purpose, and hence may violate the right to privacy of such individuals.

Dispute redressal

The preamble of the 2021 Model Act and the background note accompanying the 2020 draft Model Act state that it seeks to establish a speedy adjudication mechanism for disputes linked to tenancy agreements. The Model Act specifies the timelines for resolution of cases linked with eviction and payment of rent. However, timelines have not been specified for certain cases. For instance, no timeline has been specified within which the Rent Authority must resolve a dispute on withholding of essential services or revision of rent.

Specification of minute details

The Model Act seeks to balance the tenant-landlord relationship by specifying rights and duties of both parties. However, it also caps the maximum possible security deposit amount that a tenant must pay to the landlord. Further, a suggestive framework for the rental agreement also includes minute details on responsibility for repair and maintenance. If codified, these specifications may hinder flexibility in framing tenancy agreements.

For a PRS analysis of the Model Tenancy Act 2021, please see here.

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Pre-legislative scrutiny: How can citizens be more actively involved?

Examining the Model Tenancy Act, 2021 and regulation of rental property in India

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