Fahad Mulla 07 September 2021

What will happen to my pagdi home, if it goes for redevelopment, i have to pay the construction cost

Dear Sir,

I am having a Pagdi home, and the building is being 30 yrs old now, and the owner wants to redevelopment the building and demand the reconstruction cost for me, so after the reconstruction how much percentage I will be the property owner.

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9 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 07 September 2021

In the Pagdi system, the only differentiating element is that the tenant becomes a part-owner of the premises and not of the land. ... In case of sub-letting, the old tenant who now is an owner and the original landlord of the property shall share the rent amount amongst themselves, usually at a 35:65 ratio.

Dr J C Vashista (Advocate) 08 September 2021

Local laws with terms and conditions of agreement govern the subject matter. It is better to seek professional services of a local prudent lawyer for appreciation of facts and advise.

Kishor Mehta (CEO) 08 September 2021

Ownership and tenancy laws differ from state to state, you have not mentioned the state of your residence.

Fahad Mulla 08 September 2021

The property is in Maharashtra state. And want to know who will bear the construction coat of redevelopment. Tenant or the owner.

Kishor Mehta (CEO) 09 September 2021

In Maharashtra it is the general practice that the construction cost is borne entirely by the owner/developer and the alternative accomodation in the new building is given to the legal tenant on ownership basis with a registered owbership document. The tenant does not have to bear any cost. Further, as per the new MCGM development regulations, the tenant has to be offered about 30% more carpet area in the new flat at no extra cost.

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Fahad Mulla 09 September 2021

If the construction coat as per government norms. Suppose to be 1500 rs. Is paid by tenant. Then he can be the owner of that flat

Kishor Mehta (CEO) 09 September 2021

In Maharashtra the tenant becomes the owner of the flat in new building without paying anything.

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Fahad Mulla 09 September 2021

Thanks kishor mehta. Please mention the law number. And owner usually force to pay the construction cost of new construction. And i am mention both. Padgi system and rented system

Kishor Mehta (CEO) 09 September 2021

If you are a legal tenant as per the Maharashtra Rent Act 1999, you do not have to pay anything for the ownership of the flat in the new building, you get it in exchange for surrendering your legal tenancy rights. Consult any rent act advocate and he will explain your rights to you.

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