The 1958 Act was sought to be replaced by a legislation in 1995 but that was not notified even after enactment because of huge controversy with tenants being up in arms over it.
"In-principle approval was given for withdrawal of the (rent) bill," Information and Broadcasting Minister Manish Tewari told reporters here after the Cabinet meeting today.
However, no details were given about the new bill that will be brought to replace the earlier act.
The law, while giving protection to the tenants who pay paltry rent, was seen as serving as an instrument for harassment of landlords who became helpless and could not increase rent despite massive inflation.