Leave and licence in Maharashtra: compulsory registration, Article 36A stamp duty and police intimation

Rules and rates as of 19 October 2026.

Flats in Mumbai, Thane and Pune are commonly let on a "leave and licence" agreement rather than a lease. The label is not decoration. It decides which section of the rent law applies when the occupant will not leave, what the owner must do on paper, and how the stamp duty is worked out. Our earlier explainers covered why 11-month agreements are common across India and how police tenant verification works city by city. This one stays in Maharashtra and takes the three steps an owner and licensee actually go through: stamping, registration and police intimation.

Licence, not tenancy: what the label changes

The Maharashtra Rent Control Act, 1999 treats a licensee differently from a tenant. Section 7(5) defines a licensee as the person in occupation "under a subsisting agreement for a licence given for a licence fee or charge". Paying guests and family members living together are excluded.

The practical difference is in section 24. A licensee occupying premises for residence must hand back possession when the licence period expires. If they do not, the owner can apply to the Competent Authority, an officer appointed under section 40 who must be of at least Deputy Collector rank, a Civil Judge (Junior Division) or an advocate of five years' standing. A licensee who stays on after expiry is liable for damages at double the licence fee.

The procedure is meant to be quick. Under section 43(4), a licensee who wants to contest must file an affidavit within 30 days of the summons; otherwise the owner's statement is treated as admitted. Where leave to contest is given, the Competent Authority is to decide, "as far as may be", within six months. Explanation (b) to section 24 adds that a written licence agreement is "conclusive evidence of the fact stated therein". That is the main reason the paperwork matters.

One caution: section 3(1)(b) says the Act does not apply to premises let to banks, public sector undertakings or companies with paid-up share capital of ₹1 crore or more, among others. If your flat is leased to an employer company, ask a lawyer which rules then apply.

Step 1: registration is compulsory, at any length

Outside Maharashtra, an agreement of 11 months usually escapes compulsory registration, because section 17(1)(d) of the Registration Act, 1908 covers leases "for any term exceeding one year". In Maharashtra that does not help. Section 55(1) of the Rent Control Act says every leave and licence or letting agreement "shall be in writing and shall be registered under the Registration Act, 1908", and section 55(2) puts the duty on the landlord.

Skipping it is risky for the owner in two ways. Without a written, registered agreement, the occupant's version of the terms "shall prevail, unless proved otherwise". And section 55(3) makes a breach punishable with up to three months' imprisonment, a fine of up to ₹5,000, or both.

Registration need not mean a trip to the sub-registrar. The state's Department of Registration and Stamps runs an online facility for leave and licence agreements: the parties draft the agreement, review and edit it, sign electronically, submit it and complete registration, without visiting a Sub Registrar office. Under section 78 of the Registration Act the state government fixes registration fees; we could not open the department's fee table, so confirm the current fee on its portal.

Step 2: stamp duty under Article 36A

Stamp duty is charged under the Maharashtra Stamp Act, 1958. Leave and licence agreements have their own entry in Schedule I, Article 36A. We could not read the official text of Article 36A: the department's schedule page refuses automated access, and the consolidated copy of the Act we could open covers only the sections, not the schedule. The structure below is how the article is commonly described, and the editor should confirm it before you rely on it.

• Rate: 0.25% of the total licence fee for the whole term.
• Refundable deposit: treated as earning notional interest of 10% a year, and that notional interest is added to the base.
• Non-refundable deposit or premium: added to the base in full.

Section 30 of the Stamp Act makes the lessee pay the duty on a lease but does not mention leave and licence agreements by name, so the agreement itself should say who pays.

Worked example: a ₹40,000 flat for 24 months

Take an illustrative flat at ₹40,000 a month, a 24-month licence and a ₹2,00,000 refundable deposit, using the Article 36A structure described above.

• Total licence fee = ₹40,000 × 24 = ₹9,60,000.
• Notional interest on deposit = 10% × ₹2,00,000 × 2 years = ₹40,000.
• Base = ₹9,60,000 + ₹40,000 = ₹10,00,000.
• Stamp duty = 0.25% × ₹10,00,000 = ₹2,500.

The deposit moves the figure only a little, because only the notional interest counts:

Refundable deposit	Notional interest (10% × 2 years)	Base	Duty at 0.25%
₹1,00,000	₹20,000	₹9,80,000	₹2,450
₹2,00,000	₹40,000	₹10,00,000	₹2,500
₹4,00,000	₹80,000	₹10,40,000	₹2,600

Registration fee comes on top. Any rounding rule the department applies is not included here.

What under-stamping costs. This part we could verify. Section 34 of the Stamp Act says an instrument that is not duly stamped cannot be admitted in evidence. It can be admitted on payment of the shortfall plus a penalty of 2% of the deficient duty "for every month or part thereof", capped at four times the shortfall (the cap was raised from "double" by a 2015 amendment). If the ₹2,500 above were left unpaid for seven months, the penalty would be 2% × 7 × ₹2,500 = ₹350, and the cap of 4 × ₹2,500 = ₹10,000 would be reached only after 200 months. The bigger cost is practical: an unstamped agreement cannot be used before the Competent Authority until the duty and penalty are paid. The copy of the Act we read is consolidated up to 3 June 2022, so check for later amendments.

Step 3: telling the police

Police intimation is a separate step, under a different authority, and registration does not replace it. In Mumbai, the Brihanmumbai Police run an online "Tenant Information" form that takes details of the owner, the property, the occupant, their workplace and two people who know them, with photos and ID proof. The page states that "Police NOC is not required for renting Flat/House", and warns that giving false information is a punishable offence. The form covers only the Brihanmumbai Police Commissionerate area; Thane, Navi Mumbai and Pune have their own commissionerates, so use their process.

The Mumbai page cites no order or legal provision, and we could not find the current police commissioner's order on an official page, so we cannot tell you the penalty for not filing. Our police-verification explainer has more on how these orders work.

A short checklist

1. Confirm that the flat is in an area covered by the Rent Control Act's schedules and is not let to an exempt company.
2. Agree in writing who pays stamp duty and registration fee.
3. Register the agreement, online or at the sub-registrar, before the licensee moves in. Section 23 of the Registration Act allows four months from signing, but registering first avoids disputes about terms.
4. File the police intimation with the right commissionerate and keep the acknowledgement.
5. Keep the registered copy: under section 24 it is conclusive evidence of its terms if the licensee overstays.

This is general information, not legal advice. For a disputed eviction or an exempt-company lease, speak to a lawyer who practises before the Competent Authority.