Letter Refusing to Return the Deposit at the End of Tenancy - Word & PDF Template Form

NOTICE OF DEDUCTION AND ADJUSTMENT OF SECURITY DEPOSIT

(Issued by the Landlord/Lessor to the Tenant/Lessee in respect of the security deposit furnished under the Lease Deed)

To,

________

________

________

________

________ IN

Phone: ________

Email: ________

Dated: ________

Place: ________

Re: Adjustment and Deduction of Security Deposit in respect of the Property bearing address ________ ("Property")

Mode of Service: By Registered Post A.D. / Speed Post / Courier / Hand Delivery / Electronic Mail

Dear ________,

This letter is issued to You in my capacity as the Landlord/Lessor of the Property and serves as a formal notice and statement of account in respect of the interest-free refundable security deposit furnished by You under the Lease Deed dated ________ executed between You and me ("Lease Deed"). This notice is issued in accordance with the terms of the Lease Deed and the applicable provisions of the Indian Contract Act, 1872, the Transfer of Property Act, 1882, and the rent/tenancy law in force in the State/Union Territory of ________.

§ 1. Particulars of Tenancy and Deposit

1.1 Your tenancy in respect of the Property subsisted from ________ to ________ in accordance with the Lease Deed.

1.2 At the commencement of the tenancy, You deposited with me a sum of Rs ________ (Rupees ________ only) by way of an interest-free refundable security deposit ("Security Deposit"), to be applied and adjusted in accordance with the terms of the Lease Deed.

§ 2. Final Inspection of the Property

2.1 In accordance with the Lease Deed, I caused a final joint/inspection of the Property to be conducted on ________, after You handed over and vacated the Property.

2.2 Upon such inspection, the following damages to the Property, being beyond normal wear and tear, were found and recorded:

________

2.3 The aforesaid damages were not documented or noted in the move-in inspection conducted prior to handing over possession of the Property to You, and are reasonably attributable to Your acts, omissions or negligence during the tenancy.

§ 3. Deductions on Account of Damages

3.1 The following deductions are necessary to restore the Property to the condition in which You received it, save and except normal wear and tear:

________

3.2 The aggregate cost of repairs and restoration on account of the said damages amounts to Rs ________ (Rupees ________ only).

§ 4. Outstanding Rent

4.1 The outstanding rent payable by You as on the date of this notice is Rs ________ (Rupees ________ only).

4.2 As agreed under the Lease Deed, the said outstanding rent is liable to be adjusted against the Security Deposit.

§ 5. Outstanding Utility Charges

5.1 Under the Lease Deed, You are liable to discharge all utility charges in respect of the Property. The following utility bills remain outstanding from Your side:

________

5.2 The aggregate amount of such outstanding utility charges is Rs ________ (Rupees ________ only).

§ 6. Cleaning Charges

6.1 Owing to the condition of the Property upon Your vacating it, the Property required professional cleaning beyond standard end-of-tenancy expectations.

6.2 The estimated cost of such cleaning is Rs ________ (Rupees ________ only).

§ 7. Material Breaches

7.1 You have committed the following material breaches of the Lease Deed:

________

§ 8. Prior Communications

8.1 You were duly informed of the aforesaid issues but failed to remedy the same. The said issues were communicated to You in the following manner:

________

§ 9. Statement of Account and Adjustment

9.1 Having regard to the foregoing, the total amount lawfully deductible and recoverable from You, comprising the cost of repairs, outstanding rent, utility charges, cleaning charges and other dues, aggregates to Rs ________ (Rupees ________ only).

9.2 The aforesaid total deductions exceed the amount of the Security Deposit held by me. Accordingly, I regret to inform You that I am unable to refund any portion of the Security Deposit, and the same has been adjusted in full towards the outstanding amounts detailed above, in accordance with the Lease Deed and applicable law.

9.3 As the deductions exceed the Security Deposit, You are hereby called upon to pay the balance amount of Rs ________ (Rupees ________ only) within ________ days from the date of receipt of this notice, failing which I shall be constrained to initiate appropriate proceedings against You for recovery of the said amount, together with interest at the rate of ________% per annum and costs, entirely at Your risk as to costs and consequences.

§ 10. Mode of Payment

10.1 The said balance amount may be paid by way of demand draft / electronic transfer to the following account: ________.

§ 11. Reservation of Rights

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§ 12. Enclosures and Communication

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12.2 Should You have any queries or wish to discuss this matter, please contact me at the address, telephone number or email set out below.

I thank You for Your understanding and cooperation in this matter.

Yours sincerely,

________

(Landlord/Lessor)

________

________

________

________ IN

Phone: ________

Email: ________

Copies attached:

1. Lease Deed dated ________.

2. Move-in inspection report dated ________.

3. Final inspection report dated ________.

4. Invoices, estimates and receipts in support of the deductions.

5. Copies of outstanding utility bills.

6. Copies of prior communications.