Response

In pagdi system, the tenant is a part-owner of the property and not of the land. The tenant pays rent to the owner or landlord if he/she is not subletting the property. The tenant has the power to sell the property but will have to give a percentage (determined by market practices) of the total sale amount to the owner of the land.

Section 56 of the Rent Control Act, 1999, legalized the pagdi system of tenancy. The act authorizes the tenant to receive any amount in consideration of relinquishment or in other words, the transfer of his or her tenancy rights. The landlord or any person acting on behalf of the owner/landlord of the land receives any fine, premium or any other sum of money relating to grant or renewal of a lease of any premise, or for giving his or her consent to the transfer of a lease to a third person.

Section 7 (15) (d) of the Maharashtra Rent Control Act, 1999, provides that any member of the tenantÕs family who was living with him during the time of his death will be the first one eligible from his family to become the successor of the pagdi tenancy. The pagdi system is also legalized under the Maharashtra Rent Control Act, 1999. You cannot sell the land as you are only a part-owner, and that too of the land. It is the owner/landlordÕs choice what to do with the land.

According to a 2018 notification released by the Brihanmumbai Municipal Corporation (BMC), all pagdi tenants living in non-cessed buildings before June 1996, became eligible for new flats in the redeveloped buildings. The tenants are also entitled to a minimum area of 300 square feet and a maximum area of 1292 square feet without any cost.

Reference: Section 56 of the Rent Control Act, 1999,
Section 7 (15) (d) of the Maharashtra Rent Control Act, 1999.

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