How to Register a Leave and Licence Agreement in India Online

A leave and licence agreement is the standard legal instrument used across much of India, and particularly in Maharashtra, to formalise a rental arrangement without creating a tenancy that triggers rent control protections. Unlike a traditional lease, a leave and licence grants the occupant a right to use the premises without transferring possession in the legal sense, which is why landlords in cities like Mumbai and Pune overwhelmingly prefer this structure. This guide explains how to register one correctly, what stamp duty applies, and what documentation you need.

Why Registration Is Mandatory, Not Optional

Under state rent control and tenancy laws, leave and licence agreements are required to be registered, and unregistered agreements can create significant legal risk for both parties. An unregistered agreement is generally not admissible as primary evidence in court if a dispute arises over rent, possession, or the terms of occupation, which leaves both the landlord and the licensee vulnerable in the event of a disagreement. Registration also creates an official record of the transaction, which is useful for tax purposes, address verification, and background checks.

The Maharashtra Model: Registering via the IGR Portal

Maharashtra has one of the most streamlined systems for leave and licence registration through its Inspector General of Registration, or IGR, portal. The process allows the agreement to be drafted, stamped, and registered largely online, without requiring both parties to visit the sub-registrar's office in person for straightforward cases. The landlord or a registered document writer typically drafts the agreement on the portal, enters the terms including rent, security deposit, and duration, and the system calculates the applicable stamp duty automatically.

Once the draft is finalised, both parties, along with two witnesses, complete a biometric verification process, either through an in-person visit to a designated centre or via a video-based verification facility offered in some jurisdictions. This biometric step authenticates the identities of all signatories and helps prevent fraudulent registrations using stolen identity documents.

Stamp Duty: How Much You Will Pay

Stamp duty on leave and licence agreements varies considerably from state to state, generally ranging from 0.25 percent to 4 percent of the total rent payable over the licence period, calculated on a formula that typically accounts for the monthly rent, the security deposit, and the tenure of the agreement. Maharashtra applies a relatively standardised formula through its IGR portal, while other states may require manual calculation or a visit to the sub-registrar for an assessment. It is worth confirming the exact stamp duty rate applicable in your state before finalising the agreement, since underpaying stamp duty can render the document technically deficient and subject to penalty upon later scrutiny.

What the Agreement Should Cover

A well-drafted leave and licence agreement should clearly specify the monthly rent and any escalation clause, the security deposit amount and terms for its refund, the licence period and renewal terms, maintenance and utility payment responsibilities, restrictions on subletting, and the process for termination or early exit by either party. Two witnesses are required to sign the agreement in addition to the landlord and the licensee, and their identity documents should also be collected and retained as part of the executed paperwork.

If you are the landlord and the licensee later fails to vacate the premises after the licence period ends or upon breach of terms, understanding how to legally evict a tenant in India, including grounds and notice period is essential, since the eviction process for a leave and licence occupant, while generally faster than for a traditional tenant, still requires following the correct legal notice and court procedure rather than resorting to self-help measures like forcibly changing locks.

Security Deposit and Refund Disputes

Security deposit disputes are among the most common friction points at the end of a leave and licence term. To minimise conflict, the agreement should specify not just the deposit amount but the exact timeline for refund after the licensee vacates, the deductions permissible for damage beyond normal wear and tear, and whether any portion of the deposit can be adjusted against unpaid utility bills or maintenance charges. Both parties should conduct a joint inspection of the premises at the start and end of the licence period, ideally with photographs, to avoid disagreements over the property's condition.

If a landlord unreasonably withholds the deposit after the licensee has vacated and handed over possession in good condition, the licensee can send a formal legal notice demanding refund within a specified period, and if this fails, pursue the matter before the consumer forum or a civil court depending on the amount involved and the specific facts of the dispute. Keeping the registered agreement, payment receipts, and any WhatsApp or email communication about the deposit terms strengthens this claim considerably. If the deposit was transferred electronically and a dispute arises over the amount actually received, knowing how to recover money sent to a wrong UPI ID or bank account can also be useful background for resolving payment-related disagreements.

Related Reading

Read our guide on the legal eviction process in India

Read our guide on obtaining an encumbrance certificate for property verification

Read our guide on completing property mutation after purchase

Key Takeaways

Leave and licence agreements must be registered under state tenancy laws, and unregistered agreements carry serious evidentiary risk in disputes.

Maharashtra allows largely online registration through the IGR portal, with biometric verification of both parties and two witnesses.

Stamp duty ranges from 0.25 percent to 4 percent of total rent depending on the state, calculated on rent, deposit, and tenure.

The agreement should clearly define rent, deposit refund terms, licence period, and termination conditions to avoid future disputes.

Both landlords and licensees should retain a copy of the registered agreement and the payment receipt for stamp duty and registration fees, since these documents are often required later for address proof applications, background verification, or in the rare event of a legal dispute over the tenancy terms. A registered leave and licence agreement is also commonly accepted as supporting proof when applying for a domicile certificate through the state portal, making it worth keeping safely well beyond the licence period itself.