As per S.24(3)(b) of the rent act an agreement of licence in writing shall be conclusive evidence of the fact stated therein.
As per S.55 of the act, Tenancy agreement to be compulsorily registered.
As per S.55(1), (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.
(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
(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.
As per S.30, Conversion of residential into commercial premises prohibited.
(1) A landlord shall not use or permit, to be used for a commercial purpose any premises
which, on the date of the commencement of this Act, were used for a residential purpose.
(2) Any landlord who contravenes the provisions of sub-section (1) shall, on conviction,
be punishable with imprisonment for a term which may extend to six months or with fine
which may extend to ten thousand rupees or with both.
As per 31. Giving receipt for any amount received compulsory.
(1) Every landlord shall give a written receipt for any amount at the time when such
amount is received by him in respect of any premises in such form and in such manner as
may be prescribed.
(2) Every landlord shall, without charging any consideration, issue the rent receipt in
respect of the premises let out to the deceased tenant in the name of the family member
referred to in sub-clause (d) of clause (15) of section 7.
(3) Any landlord or person who fails to give a written receipt for any amount received by
him in respect of any premises shall, on conviction, be punishable with fine which may
extend to one hundred rupees for each day of default.
Thus, the tenancy between you and the tenant is unlawful and they may take undue advantage of this if consulted through some other lawyer or they may be aware. Be cautious in all aspects henceforth and do not allow them to encroach upon your premises which shall be difficult in future to get them evicted.