Pagdi system

Querist : Anonymous (Querist) 29 May 2020 This query is : Resolved
Question 1: Our tenants insult us.they want everything for free.they enjoy around 2000 sq feet area at Andheri east for rent of 100 rupees a month
They have rent receipts since 1941
But there is no pagadi document

We can not maintain bungalow with so less rent.
How much can we increase rent.can we prove it's not a pagadi and increase to current rent value

Pagadi system where tenants live for more than 80 years in area around 2000 sq feet for monthly rent 100 while they never paid pagdi have no such documentation
While owners have struggled to build bungalow ,Pagdi rent people always hurt give deterogatory remarks

Why owners have to tolerate for no gain only pain

Maximum how much rent can we take from them
How can we make them pay for expenses

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The Pagdi system is an old rental model in Maharashtra where tenants pay a substantial amount upfront and then only nominal rent, essentially gaining co-ownership. This system is legally recognised under the Maharashtra Rent Control Act. Landlords facing issues with very low rents and tenants who may not have formal Pagdi documentation are advised that mutual settlement is often the best approach, though legal avenues may exist depending on specific circumstances and documentation.

Raj Kumar Makkad (Expert) 29 May 2020
So, what help we can do for you? You have not put any question rather have told/expressed a position which closes the path.

P. Venu (Expert) 29 May 2020
What is the relevance of documentation when, admittedly, the occupation has been under pagdi system?

Rajendra K Goyal (Expert) 29 May 2020
The person is living for 80 years.
Mutual settlement is the best way.

Raj Kumar Makkad (Expert) 29 May 2020
A true owner shall always remain owner. If there is no documentation showing the property rented on Pagdi basis then the tenancy can be got discontinued by serving a legal notice and then the same can be got evicted by filing a rent petition.

P. Venu (Expert) 30 May 2020
Pagdi system is an old rental model in our country. Under the system the the tenant pays a substantial amount while entering into possession, entitling him to co-ownership of the property. As such, the tenant needs to pay only a nominal rent. The system is legally recognized under Maharashtra Rent Control Act.

Rajendra K Goyal (Expert) 30 May 2020
You have not mentioned what is the exact problem.

Pagdi system is legal in Maharashtra:

.As per section 56 of Maharashtra Rent Control Act of 1999 effective from March 31, 2000:
1. The tenant or any person acting or purporting to act on behalf of the tenant to claim or receive any sum or any consideration, as a condition of the relinquishment, transfer or assignment of his tenancy of any premises;
2. The landlord or any person acting or purporting to act on behalf of the landlord to receive any fine, premium or other like sum or deposit or any consideration in respect of the grant, or renewal of a lease of any premises, or for giving his consent to the transfer of a lease to any other person.

Raj Kumar Makkad (Expert) 30 May 2020
@ Mr. Goyal

What is the relevance of section 56 in the given facts?

Dr J C Vashista (Expert) 31 May 2020
When no pagdi was deposited by tenant where is the question of refund / adjustment of the amount ?
Whether there is any rent agreement (in past or present) and the tenants were issued with rent receipt since last 80 years or so ?
I agree with expert Mr. Raj Kumar Makkad provisions of Section 56 of Maharshtra Rent Control Act, 2000 is inapplicable in the instant case.

P. Venu (Expert) 31 May 2020
The author has admitted pagdi system and its essentials in the their continued occupation on payment of nominal rent. As such, the author's assertion as to non-payment of pagdi needs to be taken with a pinch of salt. Certainly he cannot have personal knowledge of transactions which had taken place 80 years ago. And when the fact is admitted, the document, that too an ancient one, is of no consequence.

As far as I can understand, the provisions of Section 56(1) amounts to statutory recognition of the legal status of the tenant as the co-owner.

Raj Kumar Makkad (Expert) 31 May 2020
Oral admission of tenancy by way of pagdi has no relevance if there is neither any document nor is any rent receipt hence the observation of Dr. Vashishtha seems acurate. An owner cannot be deprived of from his property under the grab of long possession over his property.

P. Venu (Expert) 31 May 2020
The lawful occupation/possession under system of tenancy is an admitted fact. It is settled law that possession itself is title unless it is wholly unlawful. Lack of documents cannot displace established facts of day to day life. For instance almost all those belonging our generation may not be having certificates of marriage (I do not have). Does this absence of the marriage certificate render the wife a concubine and the children illegitimate?

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