Left your PG, and your landlord is refusing to return your deposit? Know your rights as a tenant

The Satya Niketan building collapse incident that shook the national capital had far-reaching consequences. It has not only raised safety concerns but also brought to light the reluctance of paying guest (PG) owners to refund the security deposit. Videos are circulating on social media showing landlords refusing to return security deposits to students who are willing to evacuate unsafe buildings.

Rights of a tenant

Though living in a PG is a convenient and affordable option, it’s essential for a tenant to know their legal rights to protect themselves from exploitation. Even though PG accommodations often operate informally, knowledge of tenants' rights helps one make informed choices. From a written agreement to fair rent, it's time to know your rights as a tenant and the rules and regulations limiting a landlord's power.

• Under the law, PG deposits are similar to residential rental deposits, implying that a refund is not optional. Landowners are under a binding legal obligation to return the deposit after deducting only legitimate charges.
• PG owners cannot blame normal wear and tear for deductions as charges for damage must be backed by receipts. If the landlord refuses to refund the deposit, the tenant can send a legal notice or take the matter to a consumer court.
• PG agreement should clearly detail rental terms to protect both the tenant and the landlord from future disputes. The security deposit amount, monthly rent, payment terms, refund policy, refund timeline, duration of stay, contract renewal conditions, house rules, guest policies, notice period for vacating the premises and deduction rules must be mentioned in the agreement.

• Every PG tenant has the right to live in a clean, safe and hygienic environment and the landlord must ensure that the accommodation meets basic living standards. Article 21 mentions the right to life with dignity as a fundamental right, due to which landlords must ensure that the property meets fire safety standards, has adequate ventilation and lighting, clean drinking water access, functional electrical and plumbing systems and is pest-free. If these basic needs are not met, tenants can approach local authorities (municipal office) or a consumer rights forum for legal action against the landlord.
• The law further guarantees the right to shelter as a part of the right to life, implying protection against unjustified eviction. A PG owner cannot force the tenant to vacate the premises without valid reasons. The eviction process must be governed by the terms mentioned in the rental agreement.

A Delhi High Court ruling dated 22 March 2024 states, “Upon expiry of this Lease Deed or early determination of this Lease Deed, the Lessee shall hand over peaceful vacant possession of the Said Premises as per the terms of this Deed, and, the Lessor shall simultaneously refund the Security Deposit at the time of receipt of the vacant possession. The refund of Security Deposit shall be subject to deductions if any, to arrears in rent, service tax, unpaid electricity charges upto date of hand-over, paid water charges upto date of handover."

It further notes, "In the event of a default by the Lessor in refunding this Security Deposit, the Lessee shall also have a right to use the Said Premises free of payment of Lease Rent, till actual refund of Security Deposit and interest accrued on the delay in refund of the Security Deposit and such holding over of the possession of the Said Premises shall not be deemed as trespass or illegal possession by the Parties.”