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Home / Legal / I live in a 50 years old building in Mumbai Suburbs. The building is pagdi system, where residents pay minimal rent. But the builder is not ready to redevelop this building and stay anyone on pagdi. He has given us an evacuation notice. What are the laws of redevelopment of buildings on pagdi system in Mumbai?
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I live in a 50 years old building in Mumbai Suburbs. The building is pagdi system, where residents pay minimal rent. But the builder is not ready to redevelop this building and stay anyone on pagdi. He has given us an evacuation notice. What are the laws of redevelopment of buildings on pagdi system in Mumbai?

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2 2020-09-29T13:23:49+00:00
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Pagdi is a traditional tenancy rental model in India where the renter is also part owner of the house (not the land). He gets the house on rent at a very lower price as compared to the market rent and has rights to sublet and sell the property. This practice was legalized in 1999 by Section 56 of the Rent Control Act, stating that the tenant or any party acting on behalf of the landlord can claim or receive any sum or any consideration as per the agreement between him and the tenant. Now, as per the latest notification by the Brihanmumbai Municipal Corporation (BMC), all pagdi tenants living in non-cessed buildings before June 1996, would now be eligible for new flats in the redeveloped buildings. So, you should talk to your landlord and check with him why the builder has given you an evacuation notice. If you have paid the rent and the rent receipt is on your name, you are the legal owner of the house and you should get the share after the redevelopment of the building.

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Lokesh Nath

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