Stop Deposit Theft: The 6-Step Legal Plan to Force Your Landlord to Pay.
That security deposit is not the landlord’s retirement fund. It is legally your money, held in trust, and meant only for property damage beyond normal wear and tear. Here’s how you execute the recovery plan when the deadline is missed.
I. Documentation is Your Armor (Step 1-2)
Proof wins every time. Don’t leave the property without this evidence.
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Step 1: Get Photo/Video Proof (Move-Out Day). Before you hand over the keys, take comprehensive, time-stamped photos and videos of the empty apartment. Focus on the walls, floor, fixtures, and kitchen. This neutralizes any false claims of “damage” they might raise later.
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Step 2: Clear All Dues & Demand a Statement. Pay every last utility bill (water, power) and the final rent. Get receipts. Send a final, professional email requesting the full deposit and explicitly demand an itemized list of deductions with original repair receipts if they plan to withhold anything. Deductions for normal wear and tear (like faded paint) are illegal.
Also read |Form 26AS: Step-by-Step Download Guide
II. The Escalation Phase (Step 3-4)
The deposit must be returned within the timeframe specified in the contract—often 15 to 30 days post-vacation. If they miss the deadline, you escalate immediately.
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Step 3: Serve the Formal Legal Notice. Hire a lawyer to draft and send a formal Legal Notice for Recovery of Money. This is the single biggest deterrent. It is sent via Registered Post (with Acknowledgment Due) and states:
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The total amount owed.
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The fact they breached the contract.
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That you demand payment by a strict deadline (e.g., 15 days).
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The fact that you will sue for the principal amount PLUS interest if they fail to comply.
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Step 4: Choose Your Battlefield (File the Suit). If the notice is ignored, you move to court.
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Best Option (MTA States): File a complaint with the state’s Rent Authority or Tribunal. This route is cheaper, faster, and designed specifically for tenant-landlord disputes.
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Alternative: File a Civil Suit for Recovery of Money in a Civil Court. You can claim the deposit, interest, and legal costs.
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III. Maximum Pressure (Step 5-6)
These steps are reserved for landlords acting with dishonest intent.
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Step 5: File a Criminal Complaint (IPC 406). For blatant, dishonest refusal, you can file a complaint alleging Criminal Breach of Trust (IPC Section 406). The deposit was entrusted to them, and if they dishonestly misappropriate it, they have committed a cognizable crime. This usually brings police intervention and forces a fast settlement.
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Step 6: Claim Damages & Interest. When you win the civil suit, the court will not only order the refund of the principal amount but will also often award simple interest for the duration of the delay, and sometimes punitive damages or legal costs. They broke the contract; they must pay for it.
Also read |Form 26AS: Step-by-Step Download Guide
