Check the agreement, outstanding dues and actual damage, and ask for an account of the deposit. You do not have to accept deductions without an explanation; make your request in writing and support it with evidence.
The deadline for refunding a deposit and any maximum limit are not the same throughout India. Do not treat the Model Tenancy Act as a law that applies directly in every state. It is useful to distinguish ordinary wear and tear, unpaid rent and actual damage. Without proof of handover, a dispute may arise over subsequent rent or damage.
What should you do now?
- When handing over the keys, take photographs and meter readings, and obtain an acknowledgement of possession.
- Send a calculation showing the deposit, lawful deductions and the refund amount requested.
- If the matter is not resolved, consider a notice, mediation or an appropriate recovery forum.
Which documents should you keep?
The agreement, proof of deposit payment, inspection photographs, bills and handover record.
Avoid this mistake
Adjusting the deposit against the rent for the final months without written agreement may escalate the dispute.
A hypothetical example
It was stated that ₹25,000 would be deducted from a ₹40,000 deposit, but no bill was provided. The tenant should ask for an itemised deduction. Handover photographs and the earlier condition report may help assess whether the deduction is reasonable.
Must the tenant always pay the full cost of painting?
No. The reasonableness of the deduction will be assessed based on the agreement, the condition of the premises and the applicable law.
Legal basis and useful sources
- Indian Contract Act, 1872 — Sections 27, 72–74, 126–128
- Transfer of Property Act, 1882 — Sections 54, 106–108, 122–126
This is general legal information. The advice may differ depending on your facts, the applicable law and state rules.