Centre extends five state laws to Chandigarh to boost transparency, ease of living

The Centre has also extended the Indian Stamp Punjab Amendment Acts of 2001 and 2003 which introduce a strengthened framework for valuation of properties and collection of stamp duty, including a clear mechanism for detection and correction of undervaluation, thereby improving transparency and reducing scope for evasion in property transactions.

The Centre has extended the provisions of five state legislations, including three of Punjab, to the Union Territory of Chandigarh. The move is part of a set of governance and regulatory reforms which are aimed at modernising legal frameworks, enhancing transparency and improving ease of living and ease of doing business. The extensions have been made through notifications under Section 87 of the Punjab Reorganisation Act, 1966, in accordance with the established practice of extending suitable state laws to Chandigarh, which does not have its own legislature, officials said. These measures, taken together, represent a comprehensive effort to address gaps in existing legal frameworks, bring greater clarity and uniformity in regulation, strengthen citizen protection, and support efficient governance in Chandigarh. The notifications were issued by the Centre on May 6. The reforms comprise extension of three laws of Punjab and one each of Haryana and Assam. The Assam Tenancy Act, 2021, aligned with the Model Tenancy Act, 2021, has been extended to replace the existing East Punjab Urban Rent Restriction Act, 1949, and introduce a modern and balanced tenancy framework. The Act provides for formal tenancy agreements, clear delineation of rights and obligations, structured eviction procedures and a time-bound dispute resolution mechanism, thereby promoting transparency and improving availability of rental housing. To ensure a transparent and efficient rental housing market, the Centre had formulated the Model Tenancy Act, 2021. The Model Tenancy Act seeks to balance the interests of landlords and tenants, create a transparent and accountable ecosystem for renting of premises, and provide a speedy dispute resolution mechanism. The law is also expected to encourage private participation in rental housing and promote efficient utilisation of available housing stock. The Act provides for a modern and balanced tenancy framework with various provisions including clarity on rent and tenancy terms. Mandatory written tenancy agreements will ensure that rent, duration, revision and other key conditions are clearly specified upfront, thereby reducing disputes. The Centre has also extended the Indian Stamp (Punjab Amendment) Acts of 2001 and 2003 which introduce a strengthened framework for valuation of properties and collection of stamp duty, including a clear mechanism for detection and correction of undervaluation, thereby improving transparency and reducing scope for evasion in property transactions. The extension of these amendments is expected to establish a clear and robust mechanism for detection and correction of undervaluation in property transactions, strengthen the system of levy and collection of stamp duty, ensure legal clarity in valuation and appeals and bring regulatory alignment with the neighbouring state of Punjab. The Punjab Abadi Deh (Record of Rights) Act, 2021 has been extended to provide a modern legal framework for survey and recording of ownership rights in habitation areas which have historically remained outside formal land records. The Act is expected to bring clarity in ownership, reduce disputes and support better land administration and planned urban development. Similarly, the extension of the Punjab Prevention of Human Smuggling Act, 2012 and Amendment Act, 2014 will establish a comprehensive regulatory framework for travel agents, including licensing, enforcement and penal provisions, aimed at addressing human smuggling and protecting citizens, particularly students and job seekers, from fraudulent practices. The key provisions of the Act lay down comprehensive definition of travel agents as it covers all activities related to facilitation of overseas travel, including visa consultancy, ticketing, promotional services and informal agents/intermediaries, thereby ensuring that all such entities come under a reasonable regulatory oversight. No person can operate as a travel agent without obtaining a licence from the competent authority and grant of licence is subject to police verification. This will help filter out unscrupulous operators and enhance public trust. The competent authority is empowered to issue, suspend or cancel licences in cases of fraud, misrepresentation, criminal conviction or violation of prescribed conditions, ensuring accountability in the sector. Authorised officers are empowered with powers of search, seizure and arrest in relation to offences under the Act, enabling effective enforcement against illegal activities. The Act also provides for stringent punishment, including imprisonment ranging from three to seven years along with fine, for offences related to human smuggling and illegal facilitation. Courts are empowered to attach and confiscate movable and immovable properties derived from such unlawful activities, thus acting as a strong deterrent. In addition, the Haryana Fire and Emergency Services Act, 2022 has been extended to replace the existing legal framework and introduce a contemporary, risk-based fire safety regime in Chandigarh. The Act provides for streamlined approvals, longer validity of fire safety certificates, professional compliance mechanisms and a rationalised penalty framework, thereby improving safety of life and property while reducing compliance burden. At present, fire safety in Chandigarh is governed by the Delhi Fire Prevention and Fire Safety Act, 1986 (as extended to Chandigarh).