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transfer of tenancy under the pagdi system

Guest (Querist) 18 July 2017 This query is : Resolved 
Transfer of tenancy under the Pagdi system

Dear Sir/Madam,

I have few questions for which I seek legal answer, your advice will be highly appreciated.

My father passed away last year leaving our mother and three daughters. He had purchased a room in 1995 in my mother's name, in South Mumbai, on Pagdi System, which is now given on rent with landlords permission, in return of paying him one months rent every year.

My mother is currently living in Thane and managing her expenses from 10k rent she receives from the said Mumbai room. We all three sisters are married and living with our own families.


My mother have few concerns, therefore my questions are:

1. Is it right that in case of the original tenant's demise if the property is on rent, the heirs have no right and the landlord can refuse to transfer tenancy to heirs and just takes over the property? If not then what can happen to the property after my mother?

2. Can the landlord reject the request to transfer the tenancy in any one or all three daughters names during my mothers life time.

3. What maximum percentage of transfer charge landlord can charge in case if he agrees to transfer the tenancy to any one of the daughter, or all three of us during my mothers life time? Will it be the same as we sell to outsider or will it be concessional?


Please answer the above questions and advice the best solution of this issue.

Many thanks.

P. Venu (Expert) 18 July 2017
The tenancy under pagdi system is transferable and heritable. However, in the former case, the Landlord is entitled for a portion of the proceeds. The system is long established and is based on conventions than State enacted laws.

Guest (Querist) 18 July 2017
Thank you for replying. Can you please make it clear that is it still heritable if family members of tenant are not living in the property but given on rent with landlord's permission?


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