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

Mr. Alok Sharma, a dedicated public servant, was recently transferred to the city of Navgarh in Uttar Pradesh. In his search for accommodation, he entered into a verbal agreement with a landlord, Mr. Rakesh Verma. Mr. Sharma paid a security deposit of ₹50,000 with the clear understanding that a formal, registered lease agreement would be executed. This formal agreement was a prerequisite for him to claim his House Rent Allowance (HRA) from his government department for the monthly rent of ₹25,000.

After moving into the property and incurring substantial relocation expenses, Mr. Sharma found himself in a difficult position. Mr. Verma suddenly changed his stance and refused to provide the necessary property documents for a formal agreement. He presented Mr. Sharma with an ultimatum: either sign an informal agreement on plain paper, which would be useless for HRA purposes, or vacate the premises immediately. This unexpected turn of events has left Mr. Sharma facing not only financial loss but also significant mental distress.

Advice in such cases

• Document all communications with the landlord, including dates, times, and the content of conversations. Keep records of any digital communication like text messages or emails.
• Do not vacate the property under pressure. A landlord cannot legally evict a tenant without following the due process of law as laid out in the state’s tenancy act.
• Send a formal legal notice to the landlord through an advocate. This notice should clearly state the original terms of the agreement and demand either the execution of the formal lease or the immediate refund of the security deposit along with compensation for your losses.
• 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

Several legal provisions can be invoked in such a scenario:

• The Indian Contract Act, 1872: A verbal agreement to lease is a valid contract. The landlord’s refusal to honour the terms, especially after accepting the deposit, constitutes a breach of contract. You can file a civil suit for damages or for “specific performance,” which would legally compel the landlord to execute the formal agreement.
• The Bharatiya Nyaya Sanhita, 2023 (BNS): If it can be established that the landlord had a dishonest intention from the very beginning to deceive you, criminal proceedings can be initiated.
  • Section 318 (Cheating): This applies if the landlord fraudulently induced you to pay the deposit with a promise he never intended to keep.
  • Section 316 (Criminal Breach of Trust): The security deposit was entrusted to the landlord for the purpose of a valid tenancy. His refusal to fulfil his end of the bargain could be seen as a criminal breach of that trust.
• The Specific Relief Act, 1963: This Act provides the legal remedy of ‘specific performance,’ allowing you to approach a court to direct the landlord to perform his part of the contract, i.e., sign the formal lease deed.
• State-Specific Tenancy Acts: The relevant tenancy act of the state (in this case, Uttar Pradesh) would also apply, which governs the landlord-tenant relationship and often mandates written agreements.

If you are the complainant

• Gather all pieces of evidence you have. This includes bank statements showing the transfer of the security deposit, screenshots of any WhatsApp or text message conversations, and details of any witnesses (like a property broker) to the agreement.
• 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.
• Based on your lawyer’s advice, send a stern legal notice. This is often the first step and can sometimes resolve the issue without further litigation.
• If the landlord does not respond favorably to the notice, you can proceed with filing a civil suit for breach of contract and a criminal complaint for cheating.

If you are the victim

• Your priority should be to secure your position legally. Do not give in to pressure or threats to vacate.
• Preserve every piece of evidence meticulously. Avoid further verbal conversations and insist on communicating through text or email to create a digital trail.
• 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.
• Understand that as a tenant who has paid a deposit and taken possession, you have certain rights, and the landlord cannot evict you without following the due legal process.

How the police behave in such cases

It is common for the police to view such landlord-tenant disputes as being “civil in nature.” They may show reluctance to file a First Information Report (FIR) for cheating and might advise you to approach the civil court. However, if your lawyer presents the facts clearly, highlighting the element of fraud and dishonest inducement from the start, the police can be persuaded to register an FIR. If they still refuse, you have the right to file a private complaint directly with the jurisdictional Magistrate under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS).

FAQs people normally have

What evidence is required?

The stronger your evidence, the better your case. Key pieces of evidence include:

• Proof of payment of the security deposit (e.g., bank transfer confirmation, UPI transaction ID, or a signed receipt).
• All written communication, including WhatsApp chats, text messages, or emails, where the terms of the lease, the rent, and the promise of a formal agreement are discussed.
• Testimony of any person who was present during the negotiations, such as a real estate agent or a mutual friend.
• Receipts for any expenses incurred on relocation and moving into the property.

How long will the investigation take?

The timeline can vary significantly. A police investigation, once an FIR is filed, is expected to proceed as per the timelines prescribed in the BNSS. However, delays can occur. A civil suit is a more time-consuming process and can take anywhere from several months to a few years to reach a final decision, depending on the complexity of the case and the workload of the court.

Advocate Sudhir Rao, Supreme Court of India