Produced by: Mohsin Shaikh
In Bengaluru, landlords often demand ₹5–10 lakh in rental deposits. While you’re living in the flat, they’re earning up to ₹30K in annual interest—quietly pocketing a full month’s rent for doing nothing.
That "security deposit" isn’t sitting idle. It’s likely earning 6–7% in a fixed deposit. With zero legal obligation to return interest, your money becomes their passive income stream.
"Rust on taps," "tiny stains," "repainting charges"—tenants report vague deductions with zero documentation. Many don’t see a rupee returned, even after spotless exits.
There’s no law requiring landlords to pay tenants interest on deposits unless it's written in the rental agreement. In 99% of cases, it’s not. That’s legal—but ethically murky.
The law allows cuts only for unpaid rent, utility dues, or real damage. Not for repainting, not for deep cleaning, and definitely not for “broker fees.” But landlords often exploit this grey zone.
More renters are sending legal notices, filing consumer court complaints, and demanding refunds. If your agreement’s clear and you have photos, courts usually side with tenants.
With a tight rental market and high upfront demands, most tenants don’t push back. Landlords bank on that silence—both figuratively and literally.
Security deposits are effectively interest-free loans from tenants to landlords. In a city where every rupee counts, this quiet transfer of wealth happens without regulation.
Want your money back? Record everything: take photos, get a checklist signed, and insist on written agreements. In court, paperwork beats landlord promises every time.