L&L deals only in CASH. No agreement, No registration, No Stamp duty. ALL IS WELL :)
Dear members,
We have members in our society who have given flats on leave and license basis and certain members have even rented out 'private-garages' [i.e. enclosed garages].
Both the parties' owner and tenant [or say licensor and licensee] have entered into an oral understanding so as to avoid making any written instrument to deal in cash, that is, the rent is paid in cash. Common link between the two is the Bhaijans [estate agents] of the locality.
BMC:
The BMC has been taken into confidence through local corporator and they get their share so as not to take any action on garage owners. On persistent follow-up they issued notice under section 351 to garage owners and thereafter no further action. Can a notice u/s.52 of MRTP Act, 1966 be also issued if pursued?
POLICE:
As with respect to Police the owners say that the tenants are distant relatives and since no consideration is taken there is no agreement. Consequently no verification requires to be submitted as there is no rent agreement.
Registration and stamp duty is compulsory in such deals but unfortunately there is no provision in the Maharashtra Rent Control Act,1999 or the Registration Act, 1908 for any penal action in the face of such situations. The State is losing revenue.
What can be done to ensure that the STATE gets its revenue from these transaction?
