Free Leave and Licence Agreement Template for India
Rent out residential or commercial premises in Maharashtra on a Leave and Licence basis — a structure specifically designed to prevent tenancy rights from arising under the Maharashtra Rent Control Act 1999. Our template covers the mandatory legal requirements including stamp duty, registration, and police registration.
| PREMISES | Flat No. 501, 5th Floor, Emerald Tower, Turner Road, Bandra West, Mumbai - 400 050 |
| DESCRIPTION | 1 BHK fully furnished flat, approximately 650 sq. ft. carpet area, 5th floor, with sea-facing living room |
| COMMENCEMENT | 1 May 2026 |
| DURATION | 11 months |
| MONTHLY LICENCE FEE | 45,000.00 INR |
| REFUNDABLE DEPOSIT | 2,70,000.00 INR |
| MAINTENANCE CHARGE | 2,500.00 INR/month |
Furnishing Inventory:
Double bed with mattress (master bedroom)
Split AC (1.5 Ton) — Samsung in bedroom and living room
Refrigerator (280L, LG)
Washing machine (Samsung, 7kg front-load)
Modular kitchen with 4-burner gas hob, chimney and microwave oven
Sofa set (3+2) in living room
Dining table with 4 chairs
TV unit with 43" LED TV
Instant water heater in bathroom
Built-in wardrobes in bedroom
Grounds for Immediate Revocation:
1. Non-payment of licence fee for more than 15 days after due date
2. Sublicensing or assignment of this Agreement without prior written consent
3. Use of Premises for any commercial, illegal, or immoral purpose
4. Causing damage to the Premises, fixtures, or furnishing items beyond fair wear and tear
5. Creation of nuisance or disturbance to other residents of the building
6. Expiry of the Licence Period without execution of a fresh agreement
Upon expiry or revocation, the Licensee shall forthwith vacate the Premises and deliver vacant possession to the Licensor. If the Licensee fails to vacate, the Licensor shall be entitled to recover possession through the summary procedure available under applicable law, including proceedings before the Small Causes Court, Mumbai, under the Maharashtra Rent Control Act, 1999 s. 24. No additional court order for eviction shall be required in respect of a licensee whose licence has been revoked or has expired.
What Is a Leave and Licence Agreement in India?
A Leave and Licence Agreement is a specific type of property occupation arrangement — predominantly used in Maharashtra, India — where the property owner (licensor) grants permission (licence) to another person (licensee) to use and occupy the property for a defined period, without creating a tenancy or lease relationship. The critical legal distinction is that a Leave and Licence (L&L) agreement does not confer any interest in the property on the licensee, unlike a lease under the Transfer of Property Act 1882. This prevents the licensee from acquiring tenancy rights under the Maharashtra Rent Control Act 1999 (MRC Act), which provides strong protection to tenants in Maharashtra and makes eviction difficult.
The Leave and Licence structure is primarily recognised and used under the Maharashtra Rent Control Act 1999 (Section 24), which specifically permits a licensor to grant a licence for a maximum of 60 months at a time. The MRC Act requires the L&L agreement to be in writing, properly stamped under the Maharashtra Stamp Act, and registered with the Sub-Registrar. It must also be registered with the local police station — a requirement introduced to maintain records of occupants and to prevent misuse of the arrangement. Failure to register with the police within the prescribed time period is an offence under Maharashtra law.
While the Leave and Licence structure is most prevalent in Maharashtra (Mumbai, Pune, Thane, Nagpur), similar arrangements exist in other Indian states under the Transfer of Property Act 1882 — a licence creates a personal right to occupy, not an interest in land. Outside Maharashtra, however, the legal framework is less clearly defined for this specific structure, and landlords in other states may need to use a standard lease agreement with carefully drafted termination provisions. In Maharashtra, the L&L agreement is the standard residential and commercial letting arrangement used by property owners who want to retain full control over their property and avoid the creation of protected tenancy rights.
What's Covered in This Leave and Licence Agreement Template
Our Maharashtra-focused L&L template covers all mandatory legal requirements under the MRC Act 1999 and Maharashtra Stamp Act.
Licensor & Licensee Details
Identifies the licensor (property owner) and licensee (occupant) with full legal names, addresses, Aadhaar and PAN details as required for registration.
Property Description
Describes the licensed premises with full address, CTS number, area in square feet, and floor number — as required for registration under the Registration Act 1908.
Licence Period
States the licence period (maximum 60 months under MRC Act 1999), commencement and expiry dates, with no right of renewal giving rise to tenancy.
Licence Fee (Rent)
Specifies the monthly licence fee in ₹, payment due date, and the escalation schedule for the licence fee over the licence period.
Security Deposit (Refundable)
States the refundable security deposit amount (typically 2–6 months' licence fee in Maharashtra), conditions for refund, and the licensor's right to deduct for unpaid fees and damage.
Nature of Licence — No Tenancy Created
Expressly states that the agreement creates only a personal licence to occupy and does not create a lease, tenancy, or any interest in the property under the TPA 1882 or the MRC Act 1999.
Permitted Use
Restricts use of the premises to residential or specified commercial use and prohibits subletting, assigning, or parting with possession.
Maintenance & Utilities
Allocates maintenance and utility responsibilities between licensor and licensee — electricity, water, society maintenance charges, and property tax.
Termination & Vacation
Sets the notice period for termination by either party and the licensee's obligation to vacate by the expiry date without further notice.
Stamp Duty & Registration
Notes the obligation to pay stamp duty under the Maharashtra Stamp Act and register the agreement at the Sub-Registrar's office under the Registration Act 1908.
Police Registration
Notes the requirement to register the agreement with the local police station within the prescribed period under Maharashtra law.
How to Create a Leave and Licence Agreement in Maharashtra, India
Follow these steps to prepare a legally valid L&L agreement under Maharashtra law.
- 1
Agree on Licence Terms
Agree on the licence period (maximum 60 months under MRC Act 1999), monthly licence fee, security deposit, permitted use, and maintenance responsibilities.
- 2
Draft the L&L Agreement
Prepare the agreement ensuring it clearly states that only a licence (and not a tenancy or lease) is created. Include all mandatory fields required for registration.
- 3
Pay Stamp Duty
Pay the applicable stamp duty under the Maharashtra Stamp Act on the L&L agreement — calculated based on the monthly licence fee and security deposit.
- 4
Register at the Sub-Registrar's Office
Register the L&L agreement at the office of the Sub-Registrar of Assurances with the licensor's and licensee's Aadhaar-linked identity. Both parties (or their PoA holders) must be present. Registration is mandatory for L&L agreements under the MRC Act 1999.
- 5
Register with Local Police Station
Register the agreement and the licensee's details with the local police station within the prescribed period under Maharashtra Police regulations. Retain the police registration receipt.
Legal Considerations for Leave and Licence Agreements in India
These are the critical Indian legal requirements for a valid and effective Leave and Licence arrangement.
This template is for informational purposes only and does not constitute legal advice. Consult a qualified Indian advocate or legal practitioner for advice specific to your situation.
Reviewed for Indian law
Maharashtra Rent Control Act 1999 — Section 24
Section 24 of the MRC Act 1999 specifically permits a licensor to grant a Leave and Licence of premises for residential or commercial use for a maximum period of 60 months at a time. The agreement must be in writing, duly stamped, and registered. Upon expiry of the licence period, the licensee must vacate. The licensor can recover possession through the Competent Authority under the MRC Act, which provides a faster eviction remedy than civil courts.
L&L vs Lease — The Critical Distinction
The critical difference between a Leave and Licence and a lease is that a licence creates only a personal right to occupy — it does not transfer any interest in the property. Under the MRC Act 1999, a protected tenant (under a lease) cannot be evicted except on the statutory grounds, and eviction proceedings are slow. Under an L&L agreement, the licensor retains ownership rights and the licensee has no tenancy protection — the licensor can recover possession on expiry of the licence period.
Stamp Duty Under Maharashtra Stamp Act
L&L agreements attract stamp duty under the Maharashtra Stamp Act (Article 36A). The stamp duty is calculated on the monthly licence fee, the security deposit, and the period of the licence. The formula applies a percentage to the average monthly licence fee and the refundable deposit. Stamp duty must be paid before or at registration. An unstamped or insufficiently stamped L&L agreement is inadmissible as evidence in proceedings before the Competent Authority or courts.
Recovery of Possession Under MRC Act
Under the Maharashtra Rent Control Act 1999, if the licensee refuses to vacate after the licence period, the licensor can file an application before the Competent Authority (typically the Court of Small Causes in Mumbai or the District Court elsewhere) for recovery of possession. This process is faster than a civil eviction suit. The properly registered L&L agreement is the key documentary evidence for the licensor's application.
Frequently Asked Questions
Create Your Maharashtra Leave and Licence Agreement
Use Doxuno's free Leave and Licence Agreement template to let your Maharashtra property safely, preventing tenancy rights. Stamp, register, and police-register in compliance with Indian law.
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