Published policy

Rental and Lease Policy (v2.3)

Comprehensive terms for furniture rental and leasing, mandatory KYC gating, security deposit accounting, 45-day arrears cutoff, and return inspection rules.

Slug: rental-lease-policyEffective: 2026-08-20Published: 8/20/2026Statutory & Rulebook Codified

Rental and Lease Policy

This policy governs the custody, utilization, monthly billing, and return of furniture assets under Subidha Furniture Rental and Lease programs.

1. Plan Categorization & Asset Ownership

**Rental Plans**: Flexible, short-term furniture access (1 to 6 months) for temporary residential or commercial needs.
**Lease Plans**: Structured, long-term furniture arrangements (6 to 24 months) with tenure-based rates and upgrade options.
**Absolute Ownership Retention**: Rented and leased assets remain the exclusive corporate property of Subidha Furniture. Custody transfers to the customer purely as a bailee. The customer has no right to sell, mortgage, pledge, alter, or relocate the assets without written consent.

2. Mandatory KYC Gating & Contract Activation Invariant

In accordance with strict operational risk controls, a Rent or Lease contract **cannot be activated** until the following verification gates are fully satisfied:

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**Primary Identity Proof**: Verified, masked Aadhaar, PAN, Voter ID, Passport, or Driving License on file.
**Address Proof**: Verified utility bill, municipal tax receipt, or government ID matching the delivery address.
**Premises Tenancy Proof**: Valid Rent Agreement or property ownership deed establishing the customer's legal occupancy of the premises where furniture will reside.
**Customer Photograph & Signature**: Biometric visual confirmation and signed contract.

*Note: Sales staff may save contracts as `DRAFT` while documents are gathered, but physical dispatch is strictly blocked until activation approval.*

3. Security Deposit Accounting & Protection

**Deposit Range**: A refundable security deposit of 20.00% to 30.00% of the asset's retail value is mandatory prior to dispatch.
**Liability Accounting**: Deposits are segregated into an auditable deposit ledger (`RentLeaseDepositTransaction`). They are treated as refundable customer liabilities, never as operational revenue.
**Monthly Billing Separation**: Monthly rental demands are billed separately from the deposit. Deposits cannot be casually applied toward monthly rent during active tenure.

4. Arrears Protection & 45-Day Repossession Cutoff

**Finite Deposit Buffer**: The 20%–30% security deposit covers approximately 4 to 6 months of rental liability.
**Mandatory 45-Day Cutoff**:

If a customer fails to pay monthly rent demands and arrears reach forty-five (45) days (1.5 months), store staff are legally mandated to issue a formal Notice of Default.
Staff must initiate physical recovery and repossession pickup before the 60th day.
This invariant ensures the furniture is recovered before the security deposit is exhausted, preserving sufficient funds to cover unpaid arrears, transit costs, and refurbishment.

5. Return Inspection, Deductions & Deposit Settlement

Upon tenure completion or contract termination, assets undergo technical inspection:

**Inspection Criteria**: Assessed for surface scratches, broken joinery, fabric stains, burn marks, water swelling, and missing hardware.
**Authorized Deductions**:

Outstanding rental or utility demands;
Itemized repair and replacement costs supported by technician estimates;
Mandatory deep-cleaning fees if fabric/upholstery is heavily soiled.

**Refund Timeline**: Remaining deposit funds are refunded via electronic bank transfer within seven (7) banking days following mutual sign-off on the Return Inspection Report.

Legal usage note

Published policy text is for customer clarity, operational governance, and statutory compliance.
Contracts, tax invoices, receipts, and audited delivery records remain the canonical transaction source.
For contract-specific clarifications, contact the Subidha Furniture showroom administration.