Bengaluru tenant wins consumer court battle over ₹80,000 security deposit; landlord ordered to pay 9% interest
In a case involving a dispute between a landlord and a tenant, a Bengaluru tenant has won a consumer court case against his landlord over the non-refund of an ₹80,000 security deposit after vacating a rented apartment. The consumer commission has directed the landlord to return the entire deposit with 9% annual interest and pay an additional ₹10,000 towards litigation expenses.
The III Additional Bengaluru Urban District Consumer Disputes Redressal Commission ruled that the landlord could not withhold the security deposit without producing evidence of damage to the property or establishing any outstanding rent, utility bills or other dues. The order was passed on September 26.
The dispute involved tenant Vireswar Mahanta, who decided to move out of his rented apartment after his workplace shifted from Nagawara to Whitefield in Bengaluru.
Mahanta was paying monthly rent of ₹25,000 and had deposited ₹80,000 as a refundable security amount. According to his complaint, he informed the landlord, Basireddy Kondareddy, of his decision to vacate the property on March 16, 2026.
He subsequently handed over the apartment's keys and possession on March 30, claiming that the premises had been left in good condition.
However, the landlord allegedly refused to return the security deposit despite repeated requests. During a WhatsApp call on April 16, the landlord reportedly told the tenant that the money would be refunded only after a new occupant was found for the apartment.
Mahanta argued that the rental agreement did not make the refund conditional on finding another tenant. After his legal notice dated April 30 received no response, he approached the consumer commission.
In his defence, Kondareddy argued that the tenant had failed to provide the mandatory three months' advance notice under Clause 7 of their rental agreement.
He also maintained that the security deposit could be adjusted against unpaid rent, electricity and utility bills, maintenance charges, and expenses incurred on repairing damage to the property.
Mahanta, however, sought a refund of ₹80,000 with 12% annual interest, ₹1 lakh as compensation for mental agony and financial hardship, and ₹25,000 towards legal expenses.
The commission examined the rental agreement, payment records, WhatsApp conversations, photographs and video footage of the apartment submitted by the tenant.
It was observed that the landlord had acknowledged receipt of the ₹80,000 security deposit but had failed to produce convincing evidence of damage to the premises or to establish any outstanding financial liabilities.
The commission also considered the tenant's payment records, which showed that he had paid four months' rent without default.
It held that a landlord cannot indefinitely retain a tenant's security deposit merely because certain deductions might be required. Withholding the amount without supporting evidence amounted to deficiency in service and an unfair trade practice.
The commission directed Kondareddy to refund the entire ₹80,000 deposit with 9% annual interest, calculated from March 30, 2026, when the tenant handed over possession, until the amount is realised.
The landlord must also pay ₹10,000 towards litigation expenses, taking the total principal amount payable to ₹90,000, apart from interest.
He has been given 45 days to comply with the order. If he fails to make the payment within the stipulated period, the ₹10,000 litigation cost will also attract 9% annual interest from September 29, 2026, until realisation.
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HomeMoneyPersonal FinanceBengaluru tenant wins consumer court battle over ₹80,000 security deposit; landlord ordered to pay 9% interest
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