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Haven’t registered leave-and-licence agreement? Expect no police clearance

Haven’t registered leave-and-licence agreement? Expect no police clearance

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Tenants not registering their leave-and-licence agreement may not get police clearances now on .

The department of registration and stamps has written to the police, asking them not to issue no-objection certificates (NOCs) to unregistered agreements.

In leave-and-licence agreements, the stamp duty is 0.25% of the total rent and registration fee is Rs 1,000. Around 60% documents registered in Mumbai are leave-and-licence agreements. But many people notarise them on plain stamp papers to avoid stamp duty payment.

“We have written to the police (asking them) to see if the agreement is properly registered,” Dr Ramaswami N, Inspector-General of Registration and Controller of Stamps, told dna. “In case, the agreement is not registered, the police can ask people to register it and then (come for verification),” he added.

The new proposal will be applicable for both flats and shops. A leave-and-licence agreement can be registered up to five years.

Of the over 3 lakh leave-and-licence agreements registered in Maharashtra, a major portion is from Mumbai. The department has also enabled Aadhaar-based e-registration of documents like leave-and-licence and first sale of flats.

According to the Maharashtra Rent Control Act, 1999, the responsibility of getting the agreements registered shall be on the landlord. Those who contravene the law can be imprisoned up to three months or be fined Rs 5,000. In some cases, both the penalties will apply.

The letter to the police notes that the Maharashtra Rent Control Act, 1999, came into force in 2000. Pointing to the provisions of the Act, which make registration of leave-and-licence agreements mandatory, the letter says that, still, some licensors and licensees notarise agreements.

This has raised questions on the legal validity of the agreements and evasion of stamp duty and registration fees, which is a violation of the Maharashtra Rent Control Act, 1999, and the Registration Act, 1908.




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