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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.
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LEAVE AND LICENCE AGREEMENT
LICENSOR
Pradeep Ramkrishna Joshi
Flat No. 1202, Tower B, Hiranandani Gardens, Powai, Mumbai - 400 076
Maharashtra (PAN: ABCPJ5678F)
Maharashtra (PAN: ABCPJ5678F)
By: Ph: +91 98201 12345 · E: pradeep.joshi@gmail.com
LICENSEE
Rohit Agarwal
45, Shastri Nagar, Jaipur, Rajasthan - 302 016
Rajasthan (PAN: AAAPA9876R), Aadhaar (last 4): XXXX XXXX 5432
Occupation: Software Engineer
Rajasthan (PAN: AAAPA9876R), Aadhaar (last 4): XXXX XXXX 5432
Occupation: Software Engineer
By: Ph: +91 99100 23456 · E: rohit.agarwal@email.com
Premises: Flat No. 501, 5th Floor, Emerald Tower, Turner Road, Bandra West, Mumbai - 400 050
Commencement: 1 May 2026 · Duration: 11 months
IMPORTANT NOTICE — LEAVE AND LICENCE, NOT A LEASE: This is a Leave and Licence Agreement and NOT a lease or tenancy. The Licensee is NOT a tenant and shall have no right, title, or interest in the said Premises. The Licensor shall be entitled to revoke this Licence upon giving 30 days' written notice. This Agreement does NOT create any right of tenancy under any Rent Control legislation, including the Maharashtra Rent Control Act, 1999. The possession granted to the Licensee is permissive and revocable and shall not ripen into a tenancy howsoever.
LICENCE DETAILS
| 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 |
Note on Registration: This Agreement is for 11 months — below the threshold requiring compulsory registration under Registration Act 1908 s. 17. Stamp duty under the applicable Maharashtra Stamp Act is payable on this Agreement. In Maharashtra, stamp duty on an LandL agreement is prescribed under the Maharashtra Stamp Act. The Parties are advised to pay the applicable stamp duty to ensure admissibility as evidence.
1.
GRANT OF LICENCE
The Licensor, Pradeep Ramkrishna Joshi, hereby grants to the Licensee, Rohit Agarwal, a revocable, non-transferable, personal Leave and Licence to use and occupy the premises described as Flat No. 501, 5th Floor, Emerald Tower, Turner Road, Bandra West, Mumbai - 400 050, being 1 BHK fully furnished flat, approximately 650 sq. ft. carpet area, 5th floor, with sea-facing living room (the "Premises"), located in the State of Maharashtra, for the period of 11 months commencing on 1 May 2026 (the "Licence Period"), subject to the terms and conditions of this Agreement. This licence is granted under Section 52 of the Indian Easements Act, 1882, which defines a licence as permission to occupy without creating any right in the property. The Licensee acknowledges that this Agreement is NOT a lease and confers no right or interest in the Premises.
2.
LICENCE FEE
The Licensee shall pay the Licensor a monthly licence fee of 45,000.00 INR. The licence fee shall be paid on or before the 5th day of each calendar month during the Licence Period. In the event of delay, the Licensee shall pay a late penalty of 500.00 INR per day for each day of delay beyond the due date. In addition to the licence fee, the Licensee shall pay a monthly maintenance charge of 2,500.00 INR, covering society maintenance and common area charges. For the avoidance of doubt, the payment described herein is a licence fee and not "rent" within the meaning of any Rent Control legislation. Acceptance of licence fee after revocation shall not create, revive, or extend any tenancy right.
3.
SECURITY DEPOSIT
The Licensee has paid / shall pay to the Licensor a refundable security deposit of 2,70,000.00 INR on or before the commencement date, as security for the due performance of the Licensee's obligations. The security deposit is interest-free and shall be refunded to the Licensee within 15 days after the Licensee delivers vacant possession of the Premises and all keys to the Licensor and clears all outstanding licence fees, utility dues, and maintenance charges. The Licensor may deduct from the security deposit the cost of any damage to the Premises or fixtures (beyond fair wear and tear), unpaid licence fees, and outstanding maintenance charges.
4.
UTILITIES
The Licensee shall be solely responsible for payment of all utility charges, including electricity, water, gas, and other services consumed at the Premises, directly to the respective service providers.
5.
FURNISHING
The Premises are let in a fully-furnished condition. A joint inspection and handover checklist shall be conducted and signed by both Parties at the commencement of the Licence Period. Any damage to furnishing items beyond fair wear and tear at the end of the Licence Period shall be the responsibility of the Licensee.
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
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
6.
LICENSEE OBLIGATIONS
The Licensee shall use the Premises strictly for residential purposes only and for no other purpose whatsoever. The Licensee further agrees to: (a) keep the Premises clean and in good condition; (b) not make any structural alterations, additions, or modifications to the Premises without the prior written consent of the Licensor; (c) not sublet, assign, or grant any licence in respect of the Premises or any part thereof to any third party ("sublicensing" is strictly prohibited); (d) not use the Premises for any illegal, immoral, or nuisance-causing activity; (e) comply with all applicable laws, municipal regulations, and society by-laws; and (f) permit the Licensor to exercise inspection rights as follows — The Licensor or the Licensor's authorised representative shall be entitled to enter and inspect the Premises at reasonable times upon giving at least 24 hours' prior notice. The Licensee shall give at least 30 days' advance written notice before vacating the Premises.
7.
REVOCATION AND EXPIRY
This Agreement shall automatically expire at the end of the Licence Period of 11 months without any further notice being required. The Licensor may revoke this Licence at any time by giving the Licensee 30 days' written notice.
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.
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.
8.
SECURITY DEPOSIT REFUND
The Licensor shall refund the security deposit of 2,70,000.00 INR (less permissible deductions for any unpaid licence fee, utility bills, maintenance charges, or damage to the Premises and furnishings beyond fair wear and tear) within 15 days of the Licensee delivering vacant possession and all keys to the Licensor and settling all outstanding amounts. The Licensor shall provide the Licensee with a written account of any deductions made. Any balance deposit outstanding after deductions shall be paid to the Licensee by account payee cheque or bank transfer.
9.
NO TENANCY RIGHTS CREATED
The Parties expressly agree and declare that: (a) this Agreement creates only a leave and licence under Section 52 of the Indian Easements Act, 1882, and does NOT create any lease, sub-lease, tenancy, sub-tenancy, or any other right in rem in favour of the Licensee; (b) the Licensee shall not be deemed to be a tenant of the Licensor under any law including the Maharashtra Rent Control Act, 1999, and no protection available to a tenant under any Rent Control legislation shall be available to the Licensee; (c) the Licensee has no right to claim title, adverse possession, or any other right in respect of the Premises; (d) the Licensor's right to recover possession upon revocation or expiry is absolute and shall not be impeded by the Licensee's continued occupation; and (e) any payment of licence fee after revocation or expiry shall not constitute a renewal of the licence or the creation of any tenancy howsoever.
10.
GOVERNING LAW AND JURISDICTION
This Agreement shall be governed by and construed in accordance with the laws of the Republic of India, including the Maharashtra Rent Control Act, 1999 and the Maharashtra Stamp Act. Any disputes arising under or in connection with this Agreement shall be subject to the exclusive jurisdiction of the courts at Maharashtra, including the Small Causes Court, Mumbai, which has jurisdiction over leave and licence disputes under the Maharashtra Rent Control Act, 1999.
11.
GENERAL PROVISIONS
Entire Agreement: This Agreement constitutes the entire agreement between the Parties regarding the Premises and supersedes all prior understandings, whether written or oral. Amendment: Any amendment must be in writing and signed by both Parties. Severability: If any provision is held invalid or unenforceable, the remaining provisions remain in full force. Notices: All notices shall be in writing and served by registered post or courier to the addresses herein, or by email with delivery confirmation. Electronic Execution: This Agreement may be executed electronically under the Information Technology Act, 2000. Counterparts: This Agreement may be executed in two or more counterparts, each of which constitutes an original and both of which together constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.
LICENSOR
Pradeep Ramkrishna Joshi
Date: ____________________
LICENSEE
Rohit Agarwal
Date: ____________________
WITNESS 1
Date: ____________________
WITNESS 2
Date: ____________________
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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.
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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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