Landlord & tenant
disputes in India.
Cross-border legal counsel for NRIs, businesses & families.
Renting out property in India is often a sensible choice for an NRI — until a tenant refuses to vacate, defaults on rent, or alters the property without consent. The remedies exist, but they depend on how the tenancy was documented in the first place.
Many NRIs and Persons of Indian Origin purchase property in India as an investment, with a possible return in later years. Rather than leaving the property vacant, many choose to rent it out. Rents in the major cities have risen sharply in recent years, and renting can make good economic sense.
But many NRI owners hesitate — mainly out of concern that a tenant may refuse to vacate when the tenancy ends. There is no foolproof method of protecting a landlord in India from a tenant who overstays. There are, however, several steps a landlord can take — beginning with the choice of the agreement itself — that greatly reduce the risk.
Two kinds of rental agreements
Two types of agreements are commonly used when renting property in India:
1. Rental / Lease Agreement.
A lease creates a transfer of interest in the property from the lessor to the lessee. The tenant acquires a right in the premises. This is why the classic lease is more strongly protected by rent control legislation, and why eviction from a lease is procedurally more difficult.
2. Leave and License Agreement.
A leave and license agreement does not create any interest in the premises in favour of the licensee. The licensee is permitted to occupy the premises on the terms set out in the agreement, and the licence can be revoked in accordance with those terms.
For most NRI landlords, the leave and license agreement is the more protective option. Rent control legislation generally does not apply to a leave and license, and the rights and remedies of the licensor are governed primarily by the Indian Easements Act, 1882, and by the terms of the agreement itself.
Common causes of landlord–tenant disputes
Disputes between an NRI landlord and a tenant most often arise from one or more of the following:
- Non-payment or short payment of rent by the tenant.
- Sub-letting the premises without the landlord's prior consent.
- Use of residential premises for commercial purposes.
- Material alteration or damage to the property by the tenant.
- Illegal activity conducted from the premises.
- Violation of the terms and conditions of the rent or lease agreement.
Where any of these arise, the NRI landlord may serve a legal notice for eviction on the tenant. If the tenant does not respond or does not comply, the next step is usually to file an eviction petition before the competent court or Rent Authority having jurisdiction.
Recovery of possession by an NRI landlord — the statutory route
Both the old and current rent legislation in Punjab contain specific provisions that allow a Non-Resident Indian landlord to recover possession of a property that has been let out. These provisions are important because they shortcut what is otherwise a lengthy process.
East Punjab Urban Rent Restriction Act, 1949 — Section 13-B.
Section 13-B grants a Non-Resident Indian owner the right to recover immediate possession of a residential, scheduled, or non-residential building that has been let out, where the building is required for his or her own use, or for the use of a person ordinarily living with and dependent on him or her.
- The right is available only after five years from the date the owner became the owner of the building.
- The right may be exercised only once during the owner's lifetime.
- Where the owner has let out more than one building, the application may be made in respect of only one of each category (one residential, one scheduled, one non-residential), chosen by the owner.
- After recovering possession, the owner must not transfer or let out the building again for a period of five years. If the owner does so, the evicted tenant may apply to the Controller to be restored to possession.
Punjab Rent Control Act, 1995 — Section 24(3).
Section 24(3) of the 1995 Act provides that where an owner is a Non-Resident Indian and returns to India for permanent residence, he or she may apply to the Rent Authority for immediate recovery of possession of residential or non-residential premises let out by him or her — whether before or after the commencement of the Act — where the premises are required for his or her own use, or for the use of a person ordinarily living with and dependent on him or her.
The amended Punjab Rent Control Act, 1995 also requires that rent agreements be registered with the Rent Registering Authority. Registration is important: it protects the landlord's position, provides documentary evidence of the tenancy, and simplifies enforcement. The 1995 Act, as amended, has widened the scope of protection available to NRI landlords.
The Punjab & Haryana High Court, in the matter of Krishan Kumar & others v. Kamla Devi, has set out detailed guidance on how the old and new rent legislation should be applied in relation to NRI landlord–tenant disputes.
Before letting out — practical steps we recommend
- Use a leave and license agreement rather than a lease, unless there is a specific reason to prefer a lease.
- Register the agreement with the Rent Registering Authority where required, and otherwise stamp and notarise it correctly.
- Verify the tenant's background — identity, previous landlord references, employment or business details.
- Take an adequate security deposit and record the condition of the property in writing, with photographs, at the time of handing over.
- Specify clear restrictions on sub-letting, alteration, and use of the premises for non-residential purposes.
- Provide for periodic inspection and for a defined mode of notice and termination.
- Appoint a local representative — a trusted relative, agent, or professional — to keep an eye on the property while you are abroad.
How Kavao Law can assist
We act for NRI landlords, foreign property owners, and property-holding families in landlord–tenant disputes across Punjab and other Indian states. Our work typically includes:
- Advising on the correct form of rental or licence documentation before the property is let out.
- Drafting leave and license agreements, lease agreements, and notices under the applicable rent legislation.
- Serving statutory legal notices on defaulting or overstaying tenants.
- Filing and pursuing eviction petitions before the Rent Authority or the competent civil court.
- Applying for immediate recovery of possession by an NRI landlord under Section 13-B of the East Punjab Urban Rent Restriction Act, 1949, or Section 24(3) of the Punjab Rent Control Act, 1995.
- Representing landlords in appeals, revisions, and connected proceedings.
- Coordinating with local counsel in states other than Punjab where the property is situated.
Note: The information on this page is provided for general understanding only. Rent legislation differs from state to state, and the correct remedy depends on the facts of the tenancy, the applicable Act, and the terms of the agreement. We strongly recommend that you obtain legal advice before letting out property, or before acting on a tenant default.
Questions on landlord–tenant disputes.
A lease creates an interest in the property in favour of the tenant, and attracts rent control protections. A leave and license does not create any interest in the premises — the licensee is merely permitted to occupy, and the licence can be revoked in accordance with its terms. For most NRI landlords, the leave and license is the more protective instrument.
Yes — both Section 13-B of the East Punjab Urban Rent Restriction Act, 1949, and Section 24(3) of the Punjab Rent Control Act, 1995 provide a special route for an NRI landlord to recover possession where the property is required for his or her own use or for the use of a dependent. The right is subject to conditions, including a five-year minimum ownership period and a once-in-a-lifetime limit under the older Act.
The usual first step is a legal notice to the tenant calling upon them to remedy the default or vacate the premises within the time stipulated in the agreement or by law. If the tenant does not comply, the next step is to file an eviction petition before the competent court or the Rent Authority.
Yes — under the amended Punjab Rent Control Act, 1995, rent agreements must be registered with the Rent Registering Authority. Registration protects the landlord's position, provides documentary evidence of the tenancy, and simplifies enforcement.
Yes. Most of our landlord–tenant work is done for NRIs and foreign property owners who are not in India. We handle the entire process — notice, filing, hearings, and recovery — under a Power of Attorney, and keep you informed at each stage without requiring you to travel.
Tenant problems in your Indian property?
Tell us where the property is, what the tenancy provides, and what the tenant has done. We will reply within one business day with a clear view of the remedies available.