Leave and License Agreement — Maharashtra Rules, Stamp Duty & Registration

If you are renting in Mumbai, Pune, Thane, or anywhere in Maharashtra, you need a Leave and License (L&L) agreement — not a standard rental agreement. This is a legal requirement under the Maharashtra Rent Control Act, 1999. Here is everything you need to know about the L&L format, why it exists, the stamp duty, the IGR registration process, and how AgreementDesk handles it end-to-end.

Why Mumbai Uses Leave & License — Not a Standard Lease

A standard lease or rental agreement in India can create tenancy rights under the Transfer of Property Act, making eviction legally complex and prolonged. Maharashtra addressed this by mandating the Leave & License format, which:

• Does not create any tenancy rights for the licensee
• Clearly establishes the licensor’s right to terminate and evict at end of term
• Must be registered — creating an official government record
• Enables faster dispute resolution compared to a tenancy agreement
• Is enforceable in the Mumbai Small Causes Court without requiring proof of possession

Leave & License Mumbai vs Rent Agreement Bangalore

Stamp Duty on a Leave and License Agreement

Stamp duty on a Leave and License agreement in Maharashtra is 0.25% of the total rent for the licence period plus the refundable deposit. The same rate applies in Mumbai, Pune, Thane, Navi Mumbai and every other district — it is set by the state, not the city. Registration adds ₹1,000 and the Document Handling Charge adds ₹300.

The formula for residential Leave & License agreements:

Stamp duty = 0.25% × (Monthly Rent × Months + Refundable Deposit)

Step-by-Step: Leave and License Agreement Mumbai with AgreementDesk

Who Must Be Present for the Mumbai Biometric?

• Licensor (landlord): Must be present in person, or provide a registered Power of Attorney to an authorized representative
• Licensee (tenant): Must be present in person
• Witnesses: 2 witnesses required, each with Aadhaar; cannot be family members of either party
• NRI landlords: Can provide a notarized + Embassy-attested POA — AgreementDesk handles NRI POA drafting and guidance

Police Intimation — Mandatory in Mumbai

Under Maharashtra law, the landlord must submit police intimation within 24 hours of the tenant moving in. Non-compliance attracts a fine of ₹3,000 and up to 1 month imprisonment under the Maharashtra Police Act.

• AgreementDesk submits police intimation on your behalf via the Maharashtra Police Citizen Services portal
• Documents required: copy of registered agreement + tenant Aadhaar + 2 passport photos + address proof
• Police intimation is available as a ₹899 add-on — it is not included in the base service fee

Is Leave and License Registration Compulsory in Maharashtra?

Yes. Registration of a Leave and License agreement is compulsory everywhere in Maharashtra, for every duration — there is no exemption for 11-month agreements. Section 55 of the Maharashtra Rent Control Act, 1999 requires every leave and licence agreement to be in writing and registered under the Registration Act, 1908.

Three consequences follow that most landlords are not told:

• The duty is the landlord’s, not the tenant’s. Section 55 places the responsibility for registering the agreement on the landlord.
• If it is not registered, the tenant’s version of the terms prevails. In the absence of a written registered agreement, the licensee’s contention about the rent, the deposit and the conditions stands unless the landlord can prove otherwise.
• There is a statutory penalty. A landlord who contravenes Section 55 is, on conviction, liable to imprisonment of up to three months, or a fine of up to ₹5,000, or both.

This is the single biggest difference from Karnataka, where an 11-month agreement on e-stamp paper is notarised rather than registered. In Mumbai, Pune, Thane, Navi Mumbai and Kolhapur alike, notarisation is not a substitute for registration.

Leave and License Registration on IGR Maharashtra

Leave and License agreements in Maharashtra are registered electronically through the IGR (Department of Registration & Stamps) e-registration system, which removes the Sub-Registrar office visit entirely. Stamp duty and the registration fee are paid online through the GRAS portal, and the parties are verified by biometric capture rather than by appearing at the counter.

What the IGR e-registration flow actually involves:

• Aadhaar for every party. Licensor, licensee and both witnesses each need an Aadhaar number for identity verification.
• Biometric capture. A photograph and thumb impression are recorded for each party and each witness on a department-specified scanner.
• Online payment only. Stamp duty and registration fee go through GRAS as an e-challan — cash at the counter is not part of the e-registration route.
• Digitally registered copy. Once the Sub-Registrar accepts the submission, the registered document carries the registration number and is available electronically.

AgreementDesk handles this end to end and sends the biometric officer to your address, so neither party travels. The same process and the same IGR system apply across Mumbai, Pune, Thane and Navi Mumbai.

Frequently Asked Questions — Leave and License in Maharashtra