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Umesh Shirodkar   28 July 2024

Pagadi system

I currently stay in a pagadi property as a tenant the property is almost 70 years old and is in a good habitable condition but developer has initiated for C1 process with handling BMC but after sometime developer is ready to do meeting with the tenants staying ,2 meeting has already done just want to know how much area we can claim to the developer upon what we are using and under what rule..



 3 Replies

T. Kalaiselvan, Advocate (Advocate)     28 July 2024

one’s tenancy rights under pagdi system are different from the typical renting process. If you as a tenant had purchased a ‘tenancy right’ under the Pagdi system, you are a partial owner of the rented property. This means if the original owners choose to sell the building with its land to a new real estate developer, you as a tenant will be given a substantial percentage of the current sale amount to vacate the premises.

The state government of Mumbai is planning to introduce uniform rules to extend benefits to all citizens when their buildings are redeveloped. This includes ensuring a minimum area of 300 square feet for all residents, even those with smaller flats.

Free homes of at least 300 square feet in redevelopment projects are given to residents living in cessed buildings (private buildings which pay cess for repairs and maintenance to MHADA),

This new decision will ensure free houses of minimum 300 square feet to all Mumbai residents currently living in 100-to-200-square-feet homes in old buildings.”

Dr. J C Vashista (Advocate )     29 July 2024

Pagdi Syptem of renting properties is practiced in Mumbai, it is better to consult a local prudent lawyer.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     29 July 2024

Under the Pagdi system, a renter (Pagdi holder) has limited rights, and claims can vary depending on the agreement and local laws. If the Pagdi holder is being evicted to hand over possession to the builder, they may be entitled to: 1. _Pagdi amount refund_: The original Pagdi amount paid to the landlord, which is typically a significant sum. 2. _Interest on Pagdi amount_: Interest on the Pagdi amount, which may be stipulated in the agreement or determined by local laws. 3. _Rent refund_: Refund of rent paid in advance, if any. 4. _Relocation compensation_: Compensation for relocation expenses, which may be negotiated or stipulated in the agreement. 5. _Disturbance compensation_: Compensation for disturbance caused by the eviction, which may be negotiated or stipulated in the agreement. However, the Pagdi holder may not be entitled to: 1. _Ownership rights_: Pagdi holders do not have ownership rights, so they cannot claim ownership or a share in the property. 2. _Long-term tenancy rights_: Pagdi agreements typically have a fixed term, and the holder may not have rights to long-term tenancy. To determine the exact claim, review the Pagdi agreement, consult with a legal expert, and consider local laws and regulations.


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