Pooja88 (Sr. HR) 28 March 2014

Regarding property uder paghdi system

Dear Sir/Madam,

I Kishan sharma, would like to have some clarification of below questions.

1) I am staying in Mumbai in paghdi system rent property. i would like to know if my landlord hand over our property to developer, so then as a govt. rules & regulation how much Sq.ft we can demand for or we can get.

2) we are staying in G+1 floored building and if our property structure report is good, approved by govt Licence engineer, which we have already submitted in BMC (Report: Structure will be as it is for next 10 years). then can BMC and developer come together and demolish our property????

3) can developer ask us to leave the property without any written communication, any written document or without any formal discussion??? what can we do against it?

4) If in case we want property against our property then what is the govt rule? How much % of extra land we can acquire?

Awaiting your reply ASAP.

Regards,

Kishan Sharma

09869483186

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2 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 29 March 2014

The consideration paid to a landlord as a fine, premium or consideration (pagdi) has been legalised by Section 56 of Rent Control Act, 1999.

It is now also lawful for a tenant to receive any amount in consideration of the relinquishment or transfer of his tenancy. Incidentally, in the Rent Act, 1974 giving or receiving pagdi in cash was held ‘illegal’ hence there was extensive use of black money. Now too, in cities like Mumbai, for the transfer of tenancy, 33 per cent of the amount in transaction is paid in cash to the landlord to effect the transfer of tenancy or assignment.

If one wants to sell his home for Rs nine lakhs, he will have to pay Rs three lakh of the amount to the landlord. The purchaser of land in a pagdi system is said to be a tenant and has limited rights because a very nominal rent is collected by the landlord and receipt given accordingly.

However, when there is redevelopment of the said property, the landlord usually makes a deal with the developer and stakes his claim of his 33 per cent and accordingly takes profit out of the property permanently

T. Kalaiselvan, Advocate (Advocate) 29 March 2014

I agree with the expert and valuable advise and opinion rendered by my learned friend Mr.Ramachary in this regard, ope the author's query is resolved (?).