Key takeaways
- Leave and License is the standard rental format in Maharashtra — Section 55 of the Maharashtra Rent Control Act, 1999 makes a written, registered agreement compulsory for every letting.
- Registration is mandatory for ALL durations, including 11-month agreements — within 4 months of execution, and the duty to register falls on the landlord.
- Stamp duty is 0.25% of the total rent for the term plus 10% per annum notional interest on the refundable deposit — the deposit is never added in full.
- There is no statutory cap on the security deposit — 2-3 months' rent is the market convention in Mumbai and Pune.
Maharashtra has some of the most specific rental laws in India. Section 55 of the Maharashtra Rent Control Act, 1999 makes a written, registered agreement compulsory for every letting, and Leave and License is the standard format used across the state. Whether you are renting in Mumbai, Pune, Thane, or Nagpur, this guide covers everything you need to know about the correct agreement format.
Maharashtra Rental Requirements
The Maharashtra Rent Control Act, 1999 (which replaced the older Bombay Rent Act, 1947 for new tenancies) governs all rental arrangements in the state. Key requirements under this act:
- Section 55 makes a written, registered agreement compulsory for every letting; Leave and License is the standard format used across Maharashtra
- Every agreement must be registered with the Sub-Registrar within 4 months of execution (Section 23, Registration Act, 1908)
- Maximum Leave and License duration is 60 months (5 years)
- The licensor (landlord) must provide a copy of the registered agreement to the licensee (tenant)
- There is no statutory cap on the security deposit in Maharashtra — 2-3 months' rent is the market convention in Mumbai and Pune
- Disputes under the Act go before the Competent Authority
Registration is mandatory for every duration
The 11-month shortcut that avoids registration in most states does not work in Maharashtra. Every Leave and License agreement — 11 months included — must be registered within 4 months of execution, and the duty to register falls on the landlord. If it is left unregistered, Section 55(2) means the tenant's version of the terms prevails in a dispute.Leave and License vs Lease in Maharashtra
In Maharashtra, the distinction matters more than in any other state. A Leave and License agreement (governed by the Indian Easements Act, 1882) does not create a tenancy interest in the property. The licensee gets permission to occupy but the possession remains with the licensor. This is the standard format used for residential lettings across Maharashtra.
A Lease Deed (governed by the Transfer of Property Act, 1882) creates a tenancy interest and transfers possession to the tenant. Lease deeds are still used in Maharashtra, mainly for commercial properties and old tenancies that predate the 1999 Act.
The reason Leave and License dominates Maharashtra is historical. Under the old Bombay Rent Act, tenants in lease arrangements gained near-permanent occupancy rights, making it almost impossible for landlords to reclaim their properties. The 1999 Act responded by making a written, registered agreement compulsory for every letting, and the market settled on the license format, which does not create such rights.
Mandatory Clauses in a Maharashtra Rent Agreement
A valid Leave and License agreement in Maharashtra must include the following:
- Parties: Full legal names, Aadhaar numbers, PAN (if applicable), and addresses of both licensor and licensee
- Property description: Complete address including flat number, floor, building name, society name, area (in sq. ft.), and municipal ward/zone
- License fee (rent): Monthly amount in figures and words
- Security deposit:Amount, payment terms, and refund conditions. No statutory cap applies — 2-3 months' rent is the market convention in Mumbai and Pune
- Duration: Start date, end date, and total months (maximum 60 months)
- Purpose: Residential use only (if applicable)
- Lock-in period: Duration during which neither party can terminate without cause
- Notice period: Typically 1-2 months for termination by either party after the lock-in period
- Maintenance charges: Who pays society maintenance, property tax, water, and electricity
- Termination conditions: Grounds for early termination, including non-payment of rent, misuse, subletting, or structural damage
- Witnesses: Two witnesses with their names, Aadhaar numbers, and signatures
Renting in Maharashtra?
Generate a Maharashtra-compliant Leave & License agreement in 2 minutes — correct format, correct stamp duty math, every mandatory clause included.
Create Agreement — ₹99Registration Process in Maharashtra
Registration in Maharashtra can be done online or at the Sub-Registrar Office (SRO). The online process through the IGR Maharashtra (igrmaharashtra.gov.in) portal has made this significantly easier:
- Step 1: Draft the Leave and License agreement with all mandatory clauses
- Step 2: Pay stamp duty through the GRAS (Government Receipt Accounting System) portal or purchase e-stamp
- Step 3: Visit the IGR Maharashtra portal and fill in the registration application
- Step 4: Upload the agreement, stamp duty receipt, and identity documents of all parties
- Step 5: Book an appointment at the nearest SRO for biometric verification
- Step 6: Both parties and witnesses appear at the SRO with original Aadhaar cards for biometric verification
- Step 7: Pay the registration fee of Rs 1,000 (can be paid online or at SRO)
- Step 8: Receive the registered document (Index-II) within 3-7 working days
Stamp Duty Calculation for Maharashtra
Stamp duty for Leave and License agreements in Maharashtra is calculated at 0.25% of the total consideration under Article 36A of the Maharashtra Stamp Act, 1958. The total consideration includes:
- Total license fee (rent) for the entire agreement period
- Non-refundable deposit (if any), added in full
- Notional interest of 10% per annum on the refundable security deposit — the refundable deposit itself is not added to the calculation
Example: For a 2-year agreement in Pune with Rs 20,000 monthly rent, Rs 60,000 security deposit, and 5% annual rent escalation:
- Year 1 rent: Rs 20,000 x 12 = Rs 2,40,000
- Year 2 rent: Rs 21,000 x 12 = Rs 2,52,000 (after 5% escalation)
- Total rent: Rs 4,92,000
- Add notional interest of 10% per annum on the refundable deposit: Rs 60,000 x 10% x 2 years = Rs 12,000
- Base: Rs 4,92,000 + Rs 12,000 = Rs 5,04,000
- Stamp duty: 0.25% of Rs 5,04,000 = Rs 1,260
- Registration fee: Rs 1,000
- Total government charges: Rs 2,260
To see how Maharashtra's formula compares with every other state, read our full guide on stamp duty on rent agreements across India.
Documents Needed for Registration
Ensure you have the following documents ready before visiting the SRO:
- Licensor (landlord): Aadhaar card, PAN card, passport-size photo, property ownership proof (7/12 extract, sale deed, or previous agreement), society NOC (if applicable)
- Licensee (tenant):Aadhaar card, PAN card (if rent > Rs 50,000/month), passport-size photo
- Witnesses (2): Aadhaar cards and passport-size photos
- Agreement: Printed on plain paper with e-stamp certificate attached, signed by all parties and witnesses
- Payment receipts: Stamp duty (GRAS receipt) and registration fee
The Maharashtra rent agreement process may seem complex, but it provides strong legal protection for both landlords and tenants. The compulsory registration requirement means that disputes can be taken to the Competent Authority, and both parties have a government-verified record of their agreement. Platforms like RentDraft generate Maharashtra-compliant Leave and License agreements with all mandatory clauses, making the drafting part effortless — you just need to handle the registration at the SRO.