Security Deposit Withheld: What to Do Next

Reviewed on: 2026-05-30.

If security deposit withheld, collect the account, application, transaction, policy, property, employee, pension, scholarship or bill reference and send one precise written complaint to the office that can correct the record or release the money. Ask for a written reason if the request is refused or kept pending. Escalate with the same evidence bundle to dealing assistant, drawing and disbursing officer, treasury, procurement officer and RTI route. Use RTI only for records held by a public authority: file movement, deficiency notes, dispatch records, sanction details, payment advice, inspection reports or reasons recorded on file.

Use the correct external forum. Use GeM or the other official source linked below where it fits the subject. For consumer-service disputes, consider National Consumer Helpline and e-Daakhil. For public departments, CPGRAMS, state grievance portals and RTI may help. For high-value or time-sensitive cases, take professional advice before limitation expires.

• GeM
• Central Public Procurement Portal
• MSME Samadhaan
• RTI Online

• /practical-guides/
• /practical-guides/category/government-payments/
• /practical-guides/fixed-deposit-lien-not-removed-after-settlement/
• /practical-guides/hospital-refuses-medical-records-reasonable-time/
• /practical-guides/life-insurance-maturity-payment-delayed/
• /practical-guides/employer-not-giving-salary-slip/

1. Step 1: What to do when landlord withholds security deposit? (a) Security deposit: (i) tenant pays deposit at lease commencement — refundable at vacating, (ii) landlord withholds — claims damages/unpaid rent, (iii) tenant rights: full refund minus legitimate deductions, (b) key rules: (i) Model Tenancy Act 2021 — landlord must refund within 1 month of vacating, (ii) deductions only for: unpaid rent, utility bills, structural damage beyond normal wear, (iii) normal wear and tear: NOT deductible, © common scenarios: (i) landlord refuses refund — no reason, (ii) excessive deduction — claims painting/repair, (iii) deduction for normal wear — illegal, (iv) deposit withheld — tenant vacated but no refund, (v) landlord claims unpaid rent — disputed, (d) rights: (i) tenant has right to security deposit refund — minus legitimate deductions, (ii) right to itemized deduction list — landlord must provide, (iii) right to Consumer Forum — deficiency of service, (e) authority: Rent Controller + Consumer Forum + Civil Court, (f) law: Model Tenancy Act 2021 + Consumer Protection Act 2019 + Contract Act 1872.

1. Step 2: Comparison table — deposit withholding scenarios. (a) No refund: (i) issue: landlord refuses refund, (ii) remedy: legal notice + Rent Controller, (iii) timeline: 30-60 days, (iv) example: refused; noticed; refunded, (b) Excessive deduction: (i) issue: landlord claims excessive repair, (ii) remedy: demand itemized list + dispute, (iii) timeline: 30 days, (iv) example: excessive; disputed; refunded, © Normal wear: (i) issue: deduction for normal wear, (ii) remedy: dispute — illegal, (iii) timeline: 30 days, (iv) example: wear; disputed; refunded, (d) Unpaid rent claim: (i) issue: landlord claims unpaid rent, (ii) remedy: prove payment + dispute, (iii) timeline: 30 days, (iv) example: claimed; proved; refunded, (e) No vacating: (i) issue: deposit withheld — tenant hasn't vacated, (ii) remedy: vacate + demand refund, (iii) timeline: 1 month, (iv) example: vacated; demanded; refunded. (Note: Landlord must refund within 1 month. Deductions only for damage beyond normal wear. Consumer Forum for disputes.)

1. Step 3: How to recover security deposit. (a) Step 1: Vacate + hand over keys, (b) Step 2: Demand refund — written notice, © Step 3: Landlord must refund within 1 month, (d) Step 4: If refused — legal notice, (e) Step 5: File complaint — Rent Controller / Consumer Forum, (f) Step 6: Civil suit — if amount is large.

1. Step 5: Practical tips. (a) document condition at move-in and move-out, (b) normal wear NOT deductible, © demand itemized deductions, (d) Consumer Forum very effective, (e) Example: A tenant's deposit was withheld; filed Consumer Forum; refunded with interest.

1. Step 6: Key provisions. (a) Model Tenancy Act 2021, (b) Consumer Protection Act 2019, © 1 month: refund timeline, (d) Normal wear: not deductible, (e) Itemized: deductions.

See Security Deposit and Banking Ombudsman and How to File RTI.