In India, providing a security deposit is a common practice when renting a home. The landlord collects this amount to compensate the tenant if they leave without paying rent or cause serious damage to the property. However, it is often seen that upon vacating, landlords deduct substantial amounts from the security deposit under the guise of repainting, deep cleaning, or minor wear and tear.
Indian law provides clear legal protections for tenants under Section 108(m) of the Transfer of Property Act 1882 and the Model Tenancy Act. A landlord cannot withhold your deposit using any type of damage as an excuse.
“Normal Wear and Tear” vs. “Serious Damage”
According to the law, natural changes that occur in a home over time are considered “normal wear and tear,” for which a landlord cannot deduct money from the security deposit.
Normal wear and tear (illegal deduction):
Fading of wall paint or natural peeling due to the passage of time.
Faucets, fans, lights, or switches becoming worn and failing naturally.
Minor scratches on floors or tiles due to everyday use.
Old locks or doors.
Serious damage (illegal deduction):
Making large dents or vandalism in walls.
Breaking window panes, doors, sanitary fittings, or tiles.
Altering the structure of the house without the landlord’s permission.
Leaving any pending electricity, water, or society maintenance bills unpaid.
Key rules for refunds under the Model Tenancy Act
Maximum deposit limit: For residential properties, the landlord can only accept a maximum of 2 months’ rent as security deposit.
Refund Timeline: The landlord must return the remaining deposit amount immediately after possession is handed over and the outstanding bills are paid, or within a maximum of 15 to 30 days.
A Written Breakdown is Required: If the landlord is making a deduction for any damages, they must provide the tenant with an actual bill or receipt (written breakdown) for that expense.
If the landlord refuses to return the deposit, follow these 4 steps:
1. Gather photo and video evidence at the time of moving in
Take photos and videos of the entire house, walls, and fittings when moving in and vacating. This is the most solid evidence to prove that you have handed over the house in good condition.
2. File a Written or Digital Demand
Instead of simply communicating verbally with the landlord, request a security deposit refund via WhatsApp message or official email. Attach receipts for all outstanding bills paid.
3. Send a legal notice through an advocate
If the landlord is repeatedly making excuses or illegally deducting money, send a legal notice through a lawyer. In most cases, landlords resolve the dispute and refund the money upon receiving a legal notice.
4. Approach the Rent Authority or Civil Court
File a complaint with the Rent Authority or Rent Tribunal constituted at the state level under the Model Tenancy Act. If a Rent Tribunal is not active in your area, you can file a recovery case in the Civil Court.