If you are stuck in such a situation, here is what to do.

Mr. Alok Verma, an officer with the state’s Urban Development department, received a transfer to the city of Chandpur in the state of Navpradesh. In preparation for his move, he found a suitable residence and paid a security deposit of ₹50,000 to the landlord, Mr. Rajesh Singh. The entire arrangement was based on the clear verbal agreement that a formal rent agreement would be executed. This formal document was crucial for Mr. Verma, as he needed to submit it to his department to claim reimbursement for his monthly rent of ₹25,000.

However, after Mr. Verma moved in and incurred substantial costs for shifting his family and belongings, Mr. Singh changed his stance. The landlord is now refusing to sign a formal, registered lease agreement and is instead pushing for an informal, handwritten note. This informal note would be useless for Mr. Verma’s official reimbursement claim. Mr. Singh has given him an ultimatum: either accept the informal arrangement or vacate the house immediately. Given the financial loss and mental anguish already suffered, simply leaving is not a fair option for Mr. Verma. He is now seeking to understand his legal rights and remedies in this difficult situation.

Advice in such cases

Even without a written agreement, the payment and acceptance of the security deposit, along with handing over the possession of the property, establishes a legal landlord-tenant relationship. The landlord’s refusal to honour the initial terms is a breach of the oral contract.

• Do not vacate the property under pressure. The landlord cannot legally evict you without following the due process of law.
• Gather all evidence of the transaction, including bank transfer details for the deposit, any chat messages, emails, or call recordings discussing the terms of the tenancy.
• Send a formal legal notice to the landlord through a lawyer, demanding the execution of the formal lease agreement as originally promised, or the return of the deposit along with compensation for the expenses incurred.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

Applicable Sections of Law

This situation involves aspects of contract law, property law, and potentially criminal law if fraudulent intent is established.

• The Transfer of Property Act, 1882: Section 107 of the Act states that a lease for a term not exceeding one year can be made either by a registered instrument or by an oral agreement accompanied by delivery of possession. Since possession was delivered, a valid tenancy for 11 months is presumed.
• The Indian Contract Act, 1872: The landlord has breached the oral contract. Under Section 73, the tenant is entitled to claim compensation for any loss or damage caused by this breach.
• The Specific Relief Act, 1963: The tenant can file a suit for specific performance, asking the court to direct the landlord to execute the formal lease agreement as promised. Additionally, Section 6 protects the tenant from being unlawfully dispossessed without due process.
• Bharatiya Nyaya Sanhita, 2023 (BNS): If it can be proven that the landlord had a dishonest intention from the very beginning to deceive the tenant and induce him to pay the deposit without any intention of providing a formal agreement, a complaint under Section 318 (Cheating) can be filed.

If you are the complainant

As the tenant (complainant) in this scenario, you should take proactive steps to protect your rights.

• Immediately document every interaction with the landlord. Keep a record of dates, times, and the content of conversations.
• Your first formal step should be to send a well-drafted legal notice. This notice should clearly state the original terms of the agreement, the landlord’s breach, and your demands (either execute the agreement or pay damages and return the deposit).
• If the landlord does not comply with the notice, you can file a civil suit in the appropriate court for specific performance of the contract and for recovery of damages.
• If you believe you have been cheated, you can file a criminal complaint with the police.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

If you are the victim

If you find yourself in such a predicament, it is crucial to act swiftly and strategically.

• Do not give in to threats or pressure to vacate. You are in legal possession of the property, and the landlord must follow the legal eviction process, which is time-consuming and requires valid grounds.
• Secure all your evidence. Take screenshots of chats, save bank transaction receipts, and note down the names of any witnesses who were present during the initial discussions.
• Avoid any further verbal agreements. Insist that all future communication be in writing or through your lawyer.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

How the police behave in such cases

The police generally view landlord-tenant disputes as civil matters. They are often hesitant to register a First Information Report (FIR) and may advise both parties to approach the civil court. However, if you present strong evidence suggesting a pre-meditated intention to cheat (for example, if the landlord has done this to others before), you can press for the registration of an FIR under Section 318 of the BNS. A lawyer’s intervention can be helpful in convincing the police to take action. Even if they don’t file an FIR, a formal complaint can serve as a record of the landlord’s misconduct.

FAQs people normally have

Is an oral rent agreement legally valid?
Yes, for a lease period of up to 11 months, an oral agreement accompanied by the delivery of possession is legally valid and creates a landlord-tenant relationship.

Can the landlord force me to leave immediately?
No. A landlord cannot use force or intimidation to evict a tenant. They must file an eviction suit in the appropriate court and obtain an order, which is a lengthy legal process.

Can I recover my relocation expenses from the landlord?
Yes, you can claim compensation for all losses directly resulting from the landlord’s breach of contract, including relocation costs, mental distress, and any difference in rent you might have to pay for a new, similar property.

What evidence is required?

To build a strong case, you will need:

• Proof of payment of the security deposit (bank statement, UPI transaction ID, or a signed receipt).
• Any written communication like emails, text messages, or WhatsApp chats that discuss the terms of the rent, deposit, and the promise of a formal agreement.
• Bills and receipts for expenses incurred on relocation, such as movers’ fees, painting, and other setup costs.
• If possible, a statement from a witness who was aware of the terms agreed upon.

How long will the investigation take?

The timeline can vary significantly. If a criminal complaint for cheating is filed, the police investigation as per the Bharatiya Nagarik Suraksha Sanhita (BNSS) may take a few months. A civil suit for specific performance or damages is a much longer process and can take several years for a final judgment. However, a court may grant interim relief, such as an injunction preventing the landlord from evicting you while the case is pending, which can be obtained relatively quickly after filing the suit.

Advocate Sudhir Rao, Supreme Court of India