Dear Vaibhav Bhole,
If you have your flat or premises is within Maharashtra, then to give it on Leave and License is recommended. Simply make a Leave and License agreement for 11 months (take help of a good lawyer in your area). In the leave and license agreement do not mention "Monthly Rent" but use the word "Monthly license Fees".
You and the Licensee both go to Sub Registrar of your area and get Leave and License agreement registered by paying nominal fees (i believe its 500 or 1,000) if outside Mumbai city limits and if it’s not a shop (commercial place). For commercial place its double. Thereafter go with copy of registered Leave & License agreement and photos of Licensee with his and your photo identification documents etc. to he nearest police station in your area and they will do the needful when you will show them that I am giving my place on leave and license to this person. You will be just accompanying as landlord.
This procedure will help you a lot when you want to vacate your flat since the licensee will not be able to claim his tenancy rights on your Flat and he will only be a licensee.
The above is for you as a common man to understand.
As a Lawyer and Legal Consultant, to others, who are of the opinion that registration of Leave and license agreement is not necessary in Maharashtra, I disagree with them and I would like to mention that :
Under the The Maharashtra Rent Control Act, 1999, (MAH. ACT NO. 18 OF 2000) which came in effect from 31 march 2000, under Section 55 Tenancy agreement to be compulsorily registered.
Section 55 Sub-section (1) Notwithstanding anything contained in this Act or any other law for the time being in force, any agreement for leave and licence or letting of any premises, entered into between the landlord and the tenant or the licensee, as the case may be, after the commencement of this Act, shall be in writing and shall be registered under the Registration Act, 1908.
Section 55 Sub-section (2) The responsibility of getting such agreement registered shall be on the landlord and in the absence of the written registered agreement, the contention of the tenant about the terms and conditions subject to which a premises have been given to him by the landlord on leave and licence or have been let to him, shall prevail, unless proved otherwise.
Section 55 Sub-section (3) Any landlord who contravenes the provisions of this section shall, on conviction, be punished with imprisonment which may extend to three months or with fine not exceeding rupees five thousand or with both
Hope the above clarifies.