Bengaluru’s Rental Nightmare: Landlord Greed, Sky-High Deposits, and the Fight for Tenant Rights

Bengaluru, India’s Silicon Valley, is known for its booming IT industry, vibrant culture, and skyrocketing real estate prices. But beneath the city’s glossy exterior lies a growing concern that has tenants up in arms: landlord greed.

From exorbitant security deposits to arbitrary deductions and outright refusal to refund, Bengaluru’s rental market has become a battleground for tenants seeking fairness. This article dives into the latest cases, trending discussions, tenant protection laws, and actionable steps for renters facing deposit disputes.

The Rising Tide of Landlord Greed in Bengaluru

In Bengaluru, the rental market is a landlord’s paradise. With high demand for housing driven by IT professionals, students, and migrants, landlords often demand security deposits equivalent to 6–12 months’ rent—sometimes exceeding ₹3 lakh.

These hefty sums are meant to safeguard landlords against property damage or unpaid rent, but many tenants report a disturbing trend: landlords withholding deposits without valid justification, citing vague reasons like “wall stains,” “general wear and tear,” or minor cleaning issues.

Social media platforms like X and Reddit are abuzz with stories of tenants struggling to reclaim their hard-earned money, sparking heated discussions about the “biggest scam in Bengaluru.”

Recent Incidents Highlighting the Issue:

Varun Mayya’s Viral Outcry (November 2024): Entrepreneur Varun Mayya’s post on X, which garnered over 1.1 million views, called out Bengaluru landlords for illegally retaining deposits. Mayya shared that in every one of the 10 apartments he rented, landlords deducted portions of his deposit without evidence of damage, labeling it a systemic “scam.” His post resonated with renters across India, with users from Mumbai, Gurugram, and beyond sharing similar experiences. One commenter noted, “You’re insanely lucky if you get >70% of your security deposit back.”

Rajib Agarwal’s Police Complaint (February 2025): A tenant in Whitefield, Bengaluru, had to file a police complaint to recover his ₹3.5 lakh deposit after his landlord ghosted him post-vacation. The landlord initially promised a refund within two weeks but later stopped responding. This case underscores the lengths tenants must go to for justice.

Green Glenn Layout Fraud (June 2024): A tenant in Green Glenn Layout, Belandur, exposed a landlord who owned 15 apartments and used an agent to avoid direct contact with tenants. When water supply was deliberately limited to force tenants out, the tenant rallied others, formed a WhatsApp group, and secured the flat with chains until the deposit was returned. This case, shared on Reddit, received 1.4K upvotes and highlighted collective tenant action.

A K Mandhan’s Ongoing Frustration (April 2025): Investment advisor A K Mandhan echoed Mayya’s sentiments on X, stating that he faced deposit deductions in all 10 apartments he rented in Bengaluru. He described landlords citing “damage” without proof as a widespread issue, fueling discussions about stricter regulations.

These incidents are not isolated. Social media is flooded with stories of tenants facing deductions for normal wear and tear or landlords disappearing with deposits altogether.

A Reddit thread titled “Landlord Greed: A Growing Concern in Bengaluru’s Rental Market” amassed 249 votes and 142 comments, with users lamenting the lack of enforcement and calling for stronger tenant protections.

Trending Topics Fueling the Discussion

The issue of landlord greed in Bengaluru has sparked several related trends on X and other platforms, reflecting the city’s rental crisis:

1. Sky-High Security Deposits: Landlords demanding 10–12 months’ rent as deposits have become a norm, far exceeding the national average of 2–6 months. This practice, driven by high demand and limited supply, places a heavy financial burden on tenants, particularly young professionals and students.
2. Lack of Formal Agreements: Many tenants report landlords failing to provide registered rental agreements, leaving them vulnerable to arbitrary deductions. Without clear terms, tenants struggle to prove their case when disputes arise.
3. Unfair Deductions for Wear and Tear: Landlords often categorize normal wear and tear—such as minor wall marks or faded paint—as “damage” to justify deductions. This practice violates tenant rights under existing laws but persists due to poor enforcement.
4. Tenant Workarounds and Resistance: Some tenants have resorted to creative solutions, like handing over apartments directly to new tenants to recover deposits or locking flats until refunds are issued. These stories, shared widely on X, highlight the desperation and ingenuity of renters.
5. Calls for Corporate Rental Solutions: X users have suggested that corporate rental companies could bridge the gap by offering standardized agreements and fair practices, though low financial yields make this less viable for businesses.

These trends reflect a broader sentiment: Bengaluru’s rental market is increasingly hostile to tenants, and the lack of robust enforcement allows landlords to exploit renters with impunity.

Laws Protecting Rental Deposits in India

India’s rental laws aim to balance landlord and tenant rights, but enforcement remains a challenge, especially in Bengaluru. Below are the key legal frameworks governing security deposits:

1. Karnataka Rent Control Act (1999):
   • Deposit Limit: For residential properties, landlords can demand a maximum of two months’ rent as a security deposit. However, in practice, Bengaluru landlords often charge 6–12 months’ rent, exploiting the lack of strict enforcement.
   • Refund Timeline: Landlords must return the full deposit within 30 days of the tenant vacating, provided there’s no damage or unpaid rent. Deductions require itemized receipts or evidence of repairs.
   • Normal Wear and Tear: Deductions for normal wear and tear (e.g., faded paint, minor scratches) are prohibited. Only significant damages or breaches of the rental agreement justify deductions.
2. Model Tenancy Act (2021):
   • Deposit Cap: Caps security deposits at two months’ rent for residential properties and six months’ for commercial properties.
   • Mandatory Agreements: Requires a written, registered rental agreement specifying deposit terms, refund conditions, and deduction criteria.
   • Dispute Resolution: Establishes Rent Authorities, Courts, and Tribunals for resolving disputes efficiently.
   • Implementation Status: As of 2025, only four states (Tamil Nadu, Uttar Pradesh, Andhra Pradesh, and Assam) have fully adopted the Act. Karnataka has not, leaving tenants reliant on older laws.
3. General Tenant Rights Under Indian Law:
   • Right to Refund: Tenants are entitled to a full refund of the security deposit unless the landlord can prove damage beyond normal wear and tear or unpaid rent.
   • Legal Recourse: If a landlord refuses to refund, tenants can send a legal notice, approach the Rent Control Tribunal, or file a civil lawsuit.
   • Documentation: Tenants must maintain records (rental agreements, rent receipts, move-in/move-out photos) to strengthen their case.

Despite these protections, enforcement is weak in Bengaluru. The Model Tenancy Act’s limited adoption means tenants often rely on the outdated Karnataka Rent Control Act, which struggles to address modern rental disputes.

Notable Cases Against Landlords

Several tenants have taken legal action against landlords for non-refunded deposits, setting precedents for others:

1. Rajib Agarwal’s Case (2025): After his Whitefield landlord refused to return a ₹3.5 lakh deposit, Agarwal filed a police complaint. The case gained traction when he involved the apartment’s resident welfare association, which pressured the landlord to comply.
2. Green Glenn Layout Collective Action (2024): Tenants in Belandur banded together to confront a landlord who withheld deposits citing water issues. By securing the flat and threatening legal action under IPC sections 441 and 447 (trespass), they successfully recovered their deposits.
3. Civil Lawsuits in Bengaluru Courts: Advocates report a rise in civil lawsuits against landlords for illegal deposit retention. In one case, a tenant sent a legal notice and filed a suit in civil court, recovering the full deposit after proving the landlord’s deductions were baseless.
4. Consumer Forum Complaints: Tenants have increasingly approached local consumer forums with documented evidence (e.g., rental agreements, photos) to reclaim deposits. These forums offer a faster resolution than civil courts, though success depends on strong documentation.

These cases highlight the importance of registered agreements, evidence collection, and legal action. However, the time and cost of pursuing justice deter many tenants, who often write off deposits as a sunk cost.

What Tenants Can Do: Practical Steps

To protect themselves, tenants should:

1. Sign a Registered Rental Agreement: Ensure the agreement specifies the deposit amount, refund timeline, and deduction conditions.
2. Document Property Condition: Take photos or videos of the property at move-in and move-out to counter false damage claims.
3. Send a Legal Notice: If the landlord refuses to refund, a legal notice demanding repayment within a stipulated period can be effective.
4. Approach Resident Welfare Associations: Many associations can mediate disputes and pressure landlords.
5. File a Complaint: Options include the local consumer forum, Rent Control Tribunal, or civil court. Keep all receipts, agreements, and correspondence as evidence.
6. Avoid Informal Workarounds: Adjusting rent against the deposit without agreement can violate the lease and weaken your case.

Why This Matters: A Call for Change

Bengaluru’s rental crisis is more than a financial issue—it’s a matter of fairness and trust. The city’s landlords exploit high demand and lax enforcement to impose unreasonable deposits and deductions, leaving tenants feeling powerless.

Social media has amplified these grievances, with posts like Varun Mayya’s and Reddit threads sparking nationwide conversations.

Yet, change requires stronger enforcement of the Model Tenancy Act, stricter penalties for non-compliant landlords, and greater awareness of tenant rights.

Until then, tenants must arm themselves with knowledge, documentation, and collective action.

Have you faced a deposit dispute in Bengaluru?

Share your story below and join the discussion—because no tenant should lose what’s rightfully theirs.