Getting your security deposit back, and what to do if the landlord will not pay

Key points

• Your agreement governs the deposit; in states that have adopted the Model Tenancy Act or a version of it, the state law also caps and regulates it.
• A signed fittings schedule with photographs and meter readings at move-in settles most disputes.
• Deductions should be for unpaid rent, unpaid bills and damage beyond ordinary wear and tear, backed by bills.
• If the landlord does not pay, send a written demand, then a legal notice, then use pre-litigation mediation, a rent authority or a civil suit.
• Non-return of a deposit is usually a civil dispute, not a police matter.

The short answer

A security deposit belongs to the tenant. The landlord holds it against unpaid rent, unpaid bills and damage beyond ordinary wear and tear, and must return the rest when the tenant hands back vacant possession, within the time the agreement sets. In states that have adopted the Model Tenancy Act, 2021 or their own version of it, the state law also limits the size of the deposit and requires its refund at handover, after lawful deductions.

To get it back: record the condition of the home on move-in, give notice in writing, settle bills, hand over with a joint inspection and a signed note, and ask for the refund in writing with your bank details. If the landlord does not pay, escalate in steps: a written demand, a lawyer's notice, mediation, and then the rent authority or a civil court. This is general information, not legal advice. Succession, registration and tenancy rules differ by state and by personal law, and they change. For anything that turns on your own documents, ask a property lawyer in the state where the property is.

What the rules say

In most of India the deposit is governed by the rent agreement and general contract law. Whatever the agreement says about the amount, the refund period and deductions is what binds both sides, so read it before you pay.

The Model Tenancy Act, 2021 caps the deposit at two months' rent for residential premises and six months' rent for non-residential premises, and requires the landlord to refund it at the time of taking over vacant possession, after making the deductions due. It applies only where a state has adopted it, and states adapt it; Uttar Pradesh, for example, has its own 2021 tenancy Act. Check your state's notified law for the exact rule.

Interest on the deposit is not payable unless the agreement or the state law provides for it.

Before you move in

Pay the deposit by bank transfer or UPI, never in cash, and get it acknowledged in the agreement or a receipt.

Make sure the agreement says how many days after handover the deposit is returned, what can be deducted, and that ordinary wear and tear is not deducted. Avoid open-ended clauses such as 'deductions as the owner decides'. Our rent agreement clauses guide has suggested wording.

On move-in day, list every fitting and fixture with its condition, take dated photographs and videos of each room, note the electricity, water and gas meter readings, and have both sides sign the list. This one document decides most disputes.

During the tenancy

Keep proof of every rent payment, ideally by bank transfer with the month in the reference, and ask for receipts; our rent receipt generator makes them in a minute. Report repairs to the landlord in writing, with photographs, as they arise. A leak reported in the first month is the landlord's problem; the same leak discovered at handover becomes an argument about who caused the damage.

If you make any change to the home, such as fitting a geyser or putting up shelves, get the landlord's consent in writing and agree whether you will remove it and make good when you leave.

Before you move out

Give notice in writing, by email or message the landlord has used before, for the period the agreement requires, and keep a copy. Pay the last month's rent unless the landlord has agreed in writing to adjust it against the deposit; many landlords refuse, and the agreement usually does not allow it.

Settle electricity, water, gas, internet and society charges up to the handover date, and keep the final bills. Repair anything you damaged, or agree the cost in writing. Clean the home and remove everything that is yours.

Ask the landlord or the landlord's representative to inspect with you on the handover day. Compare the home against the move-in list, take fresh photographs, return all keys and access cards, and get a signed note recording the date, the keys returned, the meter readings and any deductions agreed. Send your bank details in writing with a request for the refund.

What is a fair deduction?

Usually fair, if the agreement allows it and bills support it: unpaid rent; unpaid electricity, water, gas and society charges for the tenancy period; repair of damage beyond ordinary use, such as a broken window, a damaged appliance supplied by the landlord or holes left by fixtures; and items listed in the move-in schedule that are missing.

Usually not fair unless the agreement clearly says so: repainting after normal use; replacing worn curtains, faded fittings or ageing appliances; deep cleaning of a home returned clean; and general renovation before the next tenant. Faded paint and minor marks are ordinary wear and tear.

Illustrative figures only: a deposit of ₹60,000, an unpaid final electricity bill of ₹1,800 and a broken pane repaired for ₹2,500, both supported by bills, would leave ₹55,700 to be refunded. A claimed ₹15,000 for repainting after a two-year stay with no special damage would ordinarily be open to challenge.

If the landlord does not pay

1. Written demand: send a polite message or email setting out the deposit, any deductions you accept, the balance due, your bank details and a date for payment. Attach the handover note and photographs. Many disputes end here.

2. Legal notice: if that fails, a lawyer's notice demanding payment within a stated time, and warning of proceedings, often produces a response. Keep proof of delivery.

3. Mediation: you can apply for pre-litigation mediation or a Lok Adalat through your District Legal Services Authority under the Legal Services Authorities Act, 1987. It is free or low-cost and both sides must agree to the settlement.

4. Rent authority: in a state with a rent authority or rent court under a new tenancy law, check whether a deposit dispute can be brought there; these bodies are meant to decide tenancy disputes faster than ordinary courts.

5. Civil suit: otherwise, file a suit for recovery of money in the civil court with jurisdiction. Where the claim rests on a written agreement for a fixed sum, a summary suit under Order XXXVII of the Code of Civil Procedure may be available. Time limits apply under the Limitation Act, 1963; for a claim of this kind the period is generally three years from when the refund fell due, but confirm with a lawyer.

Police: a landlord who keeps a deposit is usually in a civil dispute with you, not committing a crime, and the police will generally direct you to the civil remedies. If you rented through a company that runs managed or co-living homes, read its terms and grievance process too.

For landlords

The same records protect you: a move-in schedule signed by the tenant, photographs, bills for every repair you deduct, and a written breakdown sent with the refund. Return the balance promptly; holding back the whole deposit over a small claim invites a dispute you may lose.

If damage or unpaid rent exceeds the deposit, you have the same routes for recovery. Under the Model Tenancy Act, a tenant who stays on after the tenancy ends without the landlord's consent is liable to pay enhanced compensation; whether that applies depends on your state's law.

Common questions

Sources

• Model Tenancy Act, 2021, sections on security deposit and on tenants holding over, Ministry of Housing and Urban Affairs (mohua.gov.in); checked 9 October 2026
• Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021; checked 9 October 2026
• Indian Contract Act, 1872 (agreements and recovery of money due); checked 9 October 2026
• Legal Services Authorities Act, 1987 (Lok Adalats and pre-litigation settlement through District Legal Services Authorities), nalsa.gov.in; checked 9 October 2026
• Code of Civil Procedure, 1908, Order XXXVII (summary suits); Limitation Act, 1963, Schedule; indiacode.nic.in; checked 9 October 2026

Last checked 2026-10-09.