Stamp duty not applicable to paying guest

By M K Gokhale
Dy. Superintendent of Stamps (Retd)
A Member of the Housing Society referred a question for answer whether the license agreement is mandatory for the paying guests and if so what is the value of the stamp duty ?
Sub. Section (5) of Section 7 of the Maharashtra Rent Control Act, 1999, defines the “Licensee” in respect of any premises or any part thereof, means the person who is in occupation of the premises or such part, as the case may be, under a subsisting agreement for license given for a license fee or charges, and includes any leased to a Co-op. Housing society registered or deemed to be registered under the Maharashtra Co-op. Societies Act, 1960, but does not include a paying guest, a member of a family residing together, a person in the service or employment of the licensor, etc.
If the paying guest is staying with the member there is no question of parting with the possession of the Flat.
From the aforesaid definition, it is very clear that the provisions of the Maharashtra Rent Control Act, 1999 are not applicable to the ‘Paying Guest’.
I am therefore of the view that the paying guest is staying in the premises along with the licensor and he or she has not possession of the premises or part thereof, such paying guest cannot considered as “Licensee” under the Maharashtra Rent Control Act, 1999 and therefore need not require to execute any License Agreement and therefore the question of payment of Stamp Duty does not arise.
I may mentioned that paying guest and licensor must be shown to be residing in the same premises as required under Section 5(4A) as different from licensee where expression of such requirement are absent paying guest not being a Licensee cannot claim, rights as contemplated under Section 15A [1988-2 BOM.C.R. 300 (S.C.) Surendra V. Royce.]