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

Mr. Sameer recently concluded a tenancy of over three years for a 2BHK apartment in a mid-sized city called Anandpur. When he first moved in, he paid a security deposit of ₹20,000, equivalent to two months’ rent, to his landlord, Mr. Gupta. The apartment was freshly painted at the start of his lease.

During his stay, like many tenants, Mr. Sameer put up posters and pictures using cello tape. Upon moving out, removing the tape caused minor paint peeling and left some marks on the walls. He cleaned the apartment but acknowledges it wasn’t in a pristine, move-in ready condition, showing signs of general use over three years. However, no fixtures were broken, and there was no structural damage.

Upon requesting his ₹20,000 deposit back, Mr. Sameer was shocked. Mr. Gupta refused to return any of the money. He claimed that the cost to repaint the entire 2BHK unit would be an exorbitant ₹80,000 and threatened to demand the additional amount from Mr. Sameer. This situation left Mr. Sameer questioning the legality and reasonableness of the landlord’s claims, especially since repainting after a three-year tenancy is often considered routine maintenance, and the quoted cost seemed highly inflated for the property and location.

Advice in such cases

If you find yourself in a similar dispute with your landlord over a security deposit, it’s crucial to act systematically and protect your rights. Here are the steps you should consider:

• Review Your Rent Agreement: This is the most critical document. Carefully check the clauses related to the security deposit, maintenance, repairs, and conditions for deductions. It should specify what constitutes “wear and tear” versus “damage.”
• Document Everything: Compile all evidence. This includes photos or videos of the property when you moved in and when you moved out. Keep a record of all communication with the landlord, such as emails, text messages, or letters, especially those concerning the deposit.
• Communicate in Writing: Send a formal, written request to your landlord for the return of the deposit. Clearly state the amount, the date you vacated, and address their claims. This creates a paper trail.
• Negotiate a Settlement: Before escalating, try to negotiate. You can propose a reasonable deduction for the minor paint touch-ups, supported by quotes from local painters, to show the landlord’s claim is inflated.
• Send a Demand Notice: If negotiation fails, the next step is to send a formal legal notice (Demand Notice) through a lawyer. This notice will detail your claim, cite the relevant clauses of your agreement, and state a deadline for the landlord to return the deposit, failing which you will initiate legal proceedings.
• 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

Disputes over security deposits are primarily governed by civil law, specifically contract law and state-specific tenancy laws.

• The Indian Contract Act, 1872: The rent agreement is a legally binding contract. The terms and conditions mentioned in it will dictate the rights and obligations of both the landlord and the tenant. Any arbitrary deduction not sanctioned by the agreement can be challenged as a breach of contract.
• State-Specific Rent Control Acts / Tenancy Acts: Many states have their own laws governing rentals. For instance, the Model Tenancy Act, 2021 (adopted by some states) provides clear guidelines on the security deposit, limiting it to a maximum of two months’ rent and mandating its refund within a specific period after the tenant vacates the premises, after making due deductions as per the agreement. You must check the applicable law in your state.
• Civil Procedure Code, 1908 (as amended by Bharatiya Nagarik Suraksha Sanhita, 2023 – BNSS): If the matter goes to court, the procedures laid out in the civil procedure code will be followed for filing a recovery suit.

If you are the complainant

If you are the landlord and believe you have a legitimate reason to deduct from the security deposit, you must follow a fair process:

• Provide Proof of Damage: You cannot simply claim damages. You must have clear evidence, such as dated photographs or videos, showing the condition of the property before the tenant moved in and the specific damages after they left.
• Obtain Professional Quotes: Get written quotations from at least two or three professional vendors for the repair work. This substantiates the amount you intend to deduct and protects you from claims of inflating costs.
• Provide an Itemized Statement: Send the tenant a detailed, written statement listing each deduction and the cost associated with it. This transparency is crucial.
• Return the Balance: After deducting the justified costs, you must return the remaining portion of the security deposit to the tenant within the timeframe specified in your agreement or by law.
• 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 are the tenant and your landlord is wrongfully withholding your deposit, here is your course of action:

• Gather Your Evidence: Collect your copy of the rent agreement, proof of deposit payment (bank statement or receipt), and any photos/videos of the property’s condition.
• Send a Formal Demand Notice: Engage a lawyer to send a legal notice to the landlord. This is often enough to resolve the issue, as it signals your intent to pursue legal action.
• File a Recovery Suit: If the landlord ignores the notice, your lawyer can file a summary suit or a regular civil suit for recovery of money in the appropriate civil court or small causes court.
• 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

It is important to understand that a security deposit dispute is a civil matter, not a criminal one. Therefore, the police have a very limited role. If you approach the police, they will likely inform you that they do not have jurisdiction over contractual disputes and will advise you to approach a civil court. They will not file an FIR for non-payment of a security deposit. Police intervention would only be warranted if the dispute escalates to include criminal acts like criminal intimidation (Section 351 of BNS), assault, or unlawful restraint.

FAQs people normally have

Can a landlord deduct money for normal wear and tear?

No. Landlords can only deduct for damages that go beyond normal wear and tear. Faded paint after several years, minor scuffs on walls, or worn-out carpeting are generally considered normal wear and tear and are the landlord’s responsibility as part of property maintenance.

What is the difference between “damage” and “normal wear and tear”?

Normal wear and tear is the expected decline in the condition of a property due to normal, everyday use over time. Damage, on the other hand, is caused by negligence, abuse, or accidents, such as large holes in the wall, broken windows, or deep scratches on wooden floors.

Is there a time limit for the landlord to return the deposit?

Yes. The rent agreement usually specifies a timeframe (e.g., 30 or 60 days after vacating). If not specified, the state’s tenancy laws may provide a deadline. If the landlord fails to meet this deadline, you can take legal action.

What evidence is required?

To build a strong case for the recovery of your security deposit, you will need:

• The signed Rent/Lease Agreement.
• Proof of payment of the security deposit (bank transfer details, receipt from the landlord).
• Photographic or video evidence of the property’s condition when you moved in and when you moved out.
• Copies of all written communication with the landlord regarding the deposit, including emails, letters, and the legal notice.
• Any receipts for repairs you may have undertaken during your tenancy that were the landlord’s responsibility.

How long will the investigation take?

Since this is a civil matter, there is no “investigation” in the criminal sense. The timeline for resolution depends on the legal path taken. A legal notice may resolve the matter within 15-30 days. If a civil suit is filed, the process can be lengthy, potentially taking anywhere from several months to a few years, depending on the court’s caseload, the complexity of the case, and the cooperation of the parties involved.

Advocate Sudhir Rao, Supreme Court of India