What is Pagdi system rules?

Pagdi system law is a little complicated one. It was a concept which was introduced in the pre-independence era; the pagdi system rules were such that no rent agreement was required between a landlord and a tenant. The tenant would pay the landlord in full and in return got rent receipts as acknowledgement.

What is Maharashtra Rent Control Act?

How much increase in rent is allowed under the Rent Control Act? Landlords are entitled to make an increase of 4\% per annum in the rent of the premises that has been let out for any purpose. Rents can also be increased, if repairs or alterations have been made in the rented accommodation, to improve its condition.

Can I sell my Pagdi property?

In the pagdi system, the tenant pays a fee, premium or consideration to the landlord as a lump sum payment. On the other hand, the property rent remains unchanged for the tenant, which is much lower than the market rate. Also, as a co-owner, the tenant can sublet or sell the property whenever he wishes to.

Who is the tenant in the Pagdi system in Mumbai?

A (male) and B (female) are a childless couple residing as tenants under the pagdi system in Mumbai. The rent receipt was in A’s name. A passed away followed by B. Now B’s brother, Mr. ‘S’ i.e. A’s brother in law claiming rights to property as tenant (tenancy rights).

What are the rights of the purchaser of land in Pagdi system?

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.

What is the Pagdi system?

We have noted that there is always reference to Pagdi system when redevelopment is concerned, especially in olden parts of the country. According to Section 56 of Rent Control Act, 1999, this consideration paid to the landlord as a fine, premium or consideration ( pagdi) was legalized.

Can a tenant receive Pagdi in consideration of relinquishment?

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.