In a recent 2014 ruling, the Karnataka High Court said that 11-month agreements can no longer be presented as evidence in court, like any transaction affecting property. Thus, if a dispute arises over ownership and that particular dispute is settled by an 11-month agreement, the agreement cannot be used as evidence in court for all purposes. The 11-month agreement is currently under scrutiny. It is worth mentioning that these leases are usually concluded in favor of residential and non-commercial properties, since they have a longer rental period and such documents must be registered. If your rental document is not registered with a validity of more than one year, it will not serve as proof in court in the event of a dispute. Along with this, a heavy penalty is also imposed if the registration of the rental document is not carried out. According to section 17 of the Registration Act 1908, leases of more than one year must be registered with the local authorities. As a result, both parties pay stamp duty and registration fees. As a rule, it is the tenant who must pay the additional rental fees. Well, the reason for the legal rental documents made by 11 months is clearly understood for you. It helps both the landlord and a tenant avoid additional costs for registration fees and stamp duties and eliminates the registration process. Thus, this makes subcontracting economical and faster. In Uttar Pradesh, for example, stamp duty on leases is four percent of the annual rent plus deposit, while registration fees are two percent of rental deposit.

So, if the duration is extended beyond this duration, it would have many effects.