Leave and Licence Agreement in Maharashtra (2026): E-Registration on the MahaRERA Portal, Stamp Duty and Witnesses

A leave and licence agreement in Maharashtra grants a licensor's property to a licensee for a fixed period — typically 11 months — while the licensor retains full ownership and possession rights. Under Section 55 of the Maharashtra Rent Control Act, 1999, any such agreement must be registered, and since 2013 the state has allowed e-registration through the Inspector General of Registration (IGR) portal. Getting this right protects the licensor from a licensee later claiming tenancy status.

What makes a leave and licence different from a lease

The distinction is not merely semantic. A lease under the Transfer of Property Act, 1882 transfers an interest in the property to the lessee. A leave and licence, by contrast, gives the licensee only a personal right to occupy — no interest in the land passes. The licensor can therefore recover possession far more easily once the licence period expires.

Courts in Maharashtra have long held that labelling a document a "leave and licence" does not automatically make it one. If the agreement contains clauses that effectively grant exclusive possession for an indeterminate period, courts may treat it as a lease. The document must be drafted carefully: the licence must be revocable, and the licensor's right of re-entry should be stated clearly.

The practical advantage for landlords is plain. A lease — particularly a protected tenancy under the old Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 — could make eviction a decade-long affair. A properly executed and registered leave and licence under the 1999 Act sidesteps that trap entirely.

Section 55 and the mandatory registration requirement

Section 55 of the Maharashtra Rent Control Act, 1999 is the provision landlords and tenants most often misunderstand. The section makes registration compulsory for every leave and licence agreement for residential premises. Failure to register does not void the agreement, but the unregistered document cannot be admitted as evidence in any court proceeding. More critically, an unregistered agreement deprives the licensor of the statutory protections the Act otherwise provides — including the right to recover possession on expiry without going through full eviction proceedings.

The registration must be completed within four months of the date of execution. If that window lapses, the licensor and licensee can still register, but a penalty is payable to the registrar under Section 25 of the Indian Registration Act, 1908.

E-registration on the IGR Maharashtra portal

Maharashtra's e-registration system, managed by the Department of Registration and Stamps, allows parties to register a leave and licence agreement without visiting a sub-registrar's office. The process runs through the portal at igrmaharashtra.gov.in.

Step 1 — Create an account. Both the licensor and licensee need an account on the portal. Aadhaar-linked mobile numbers are mandatory for OTP-based authentication.

Step 2 — Draft the agreement online. The portal has a built-in agreement generator. Parties fill in property details, licence period, monthly compensation, security deposit amount, and witness information. Alternatively, a privately drafted agreement can be uploaded in PDF form.

Step 3 — Calculate and pay stamp duty. The portal's online stamp duty calculator computes the amount due. For residential leave and licence agreements, the rate is 0.25% of the total consideration, calculated as: total rent for the licence period, plus any non-refundable deposit, plus notional interest at 10% per annum on any refundable security deposit. Stamp duty is paid online via GRAS (Government Receipt Accounting System).

Step 4 — Biometric verification or Aadhaar e-sign. Parties can complete verification at an authorised e-registration centre — many Common Service Centres (CSCs) across Maharashtra are authorised for this — or opt for Aadhaar-based e-signing. Where Aadhaar e-sign is used, neither party needs to appear physically.

Step 5 — Upload the registered document. Once verified, the system generates a registered document with a unique QR code. This can be downloaded immediately. No physical stamp paper is required in the e-registration route.

The turnaround from payment to registered document is typically the same day, often within a few hours.

Stamp duty calculation in 2026

For residential agreements, stamp duty is 0.25% of the total consideration under Article 36A of Schedule I of the Maharashtra Stamp Act, 1958. Total consideration is calculated as: (monthly rent × number of months) + any non-refundable deposit + notional interest at 10% per annum on any refundable security deposit. Registration fees are capped at ₹1,000 for agreements up to a period of 60 months. For agreements beyond 60 months, or for commercial premises, different slabs under the Maharashtra Stamp Act, 1958 apply.

A common error is treating the refundable security deposit as a simple addition to the rent base. Under Article 36A, the deposit is not added directly — instead, notional annual interest at 10% on the refundable deposit is computed for each year of the licence term and added to the total. Excluding this and understating duty can lead to penalties.

For a straightforward 11-month residential agreement in Mumbai with a monthly rent of ₹25,000 and a refundable security deposit of ₹1,50,000:

• Total rent = ₹25,000 × 11 = ₹2,75,000
• Notional interest on deposit = ₹1,50,000 × 10% × (11/12) = ₹13,750
• Total consideration = ₹2,88,750
• Stamp duty at 0.25% = ₹722 (rounded to nearest ₹10)
• Registration fee = ₹1,000 (capped)

Total outlay: approximately ₹1,722. That compares favourably with the risk of an unregistered agreement.

Witnesses: who qualifies and what they must do

A leave and licence agreement registered under the Maharashtra Rent Control Act requires two witnesses. The witnesses must be adults with a valid identity document. They cannot be immediate family members of either the licensor or the licensee (this rule varies by registrar, but avoiding family witnesses is prudent). Witnesses sign both the agreement and the e-registration form, and their Aadhaar or PAN details are recorded.

In the e-registration process, witnesses may need to appear at the CSC or e-registration centre for biometric verification. Where Aadhaar e-sign is used, witnesses can also sign digitally provided they have Aadhaar-linked mobile numbers.

A recurring practical problem is witnesses who are unavailable on the registration day. Delays at this stage push the agreement past the four-month registration window, triggering penalties. Parties should confirm witness availability before scheduling the e-registration appointment.

Key clauses to include

Beyond the basic parties-and-property details, a well-drafted agreement should address:

Revocability. State explicitly that the licence is revocable at the licensor's discretion on a specified notice period (commonly one month). This preserves the legal character of the licence.

No tenancy rights. A clause affirming that no tenancy, sub-tenancy, or interest in the property is created. Courts will look at the substance of the agreement, but including such a clause reinforces the parties' intention.

Permitted use. Residential licence agreements should restrict use to residential purposes only. Sub-licensing should be expressly prohibited.

Security deposit terms. Specify the deposit amount, the conditions for deductions, and the timeline for refund — typically within 30 days of handing over possession.

Restoration of possession. The agreement should state that on expiry or revocation, the licensee will hand over vacant possession without requiring a court order.

MahaRERA's role for long-term agreements

The Maharashtra Real Estate Regulatory Authority (MahaRERA) comes into the picture primarily for sale agreements and builders' obligations. For standard residential leave and licence agreements of 11 months, MahaRERA registration is not required. The confusion arises because both the IGR portal and MahaRERA are managed under the state's housing and registration infrastructure.

Where MahaRERA is relevant is in agreements tied to under-construction or newly constructed residential units offered by a registered developer. In those cases, the MahaRERA project registration number should be cited in the agreement, and any advance payment beyond 10% of the unit's cost requires a registered agreement of sale rather than a leave and licence.

Common mistakes and how to avoid them

Drafting the agreement for exactly 11 months to avoid registration is a widely repeated myth. Section 55 of the 1999 Act applies to all residential leave and licence agreements regardless of duration. The 11-month convention is a legacy practice; it does not exempt the agreement from registration.

Collecting rent informally without updating the agreement at each renewal is another frequent error. Each renewal or extension ideally requires a fresh agreement or an addendum that is itself registered. Courts have held that continued possession after an expired registered agreement, with the licensor's acquiescence, can be used by a licensee to argue continuity of occupation — weakening the licensor's position.

Using an agreement downloaded from a generic source without adapting it to Maharashtra's specific requirements — particularly the Section 55 compliance clause, the IGR QR code provision, and the correct stamp duty amount — is a shortcut that often creates disputes later.

A properly prepared leave and licence agreement on forms-legal.com is structured to reflect Maharashtra's specific statutory requirements and serves as a solid starting point before you engage a local advocate for customisation.

What happens if the licensee refuses to leave

If the licensee does not vacate on expiry of a registered leave and licence agreement, the licensor can file an application before the competent authority under Section 24 of the Maharashtra Rent Control Act. This is a summary proceeding — significantly faster than a regular eviction suit in the civil courts. The authority can order eviction within a few months where the agreement is registered and the licence period has clearly expired.

The contrast with a lease is stark. Evicting a tenant under a lease can take years in Maharashtra's overburdened civil courts. That difference alone makes registration worth every rupee of stamp duty.