Bhavik (Accountant) 10 July 2013

Transfer of property under pagdi system

Sir / Madame,

I live with my family in a pagdi flat, basically there are 2 flats and following are the details:-

Flat 1. is in the name of my Uncle (Fathers Brother)

Uncle expired 15 years back and wrote a note on a simple piece of paper that he doesn't object if I reside in the flat. Landlord accepted rent in cash and issued rent receipts in my uncles name for the past so many years. Now, all of a sudden he has objection and stopped accepting the rent for the past 2 months. he is asking for a transfer fee which amounts to Rs. 15 Lacs. 35% of the property value. or vacate the flat. Please Advice.

Flat 2. is in my dad's name

same as above the only difference is is that he is asking for 5 lacs for transfer i.e. from dad's name to my name. Please Advice.

I do not have the money to give him, I have ration card, and other documents in my name to prove that i have been residing at the above 2 flats for 35-40 years. What legal options are available for me. Please Help.

Thank you.

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Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 10 July 2013

Neither the Transfer of Property Act nor any Rent Control Act of any Indian State recognises the Term 'Pagri' & these paying,taking part % by the landlord etc is all out of court & personal deals where there is no legal sanction or recognition. The old rented property whether for residential or commercial purposes,where rent is very nominal but the value of the property has arisen many fold,the concept of this 'Pagri' exist & being followed. If you ask the law regarding this sorry there exist no law but all laws/rules are made by the parties themselves, if you occupy a tenanted property which stood in your deceased grandfather's name but now you want that to have your father's name,then definitely the landlord will ask for his share for this but if you continue to live in the property then after the death of your grandfather the contractual tenant your father had become the statuary tenant can be evicted from the property according to the Rent Control Act applicable to your city/state, however in even of the death of your father being a statuary tenant,the tenancy will not pass on to you as only contractual tenancy can be inherited not the statuary. What it means in that case either you pay the amount of money asked in the form of 'Pagri' to the landlord & become the new contractual tenant with the tenancy in your name or you will find yourself out in the street without the landlord having court decree for your eviction as you will neither be a contractual nor statuary tenant but only an intuder in the property.