How to sell property in pagdi system


My aunty widow without any children stays in pagdi system. She wants to sell, but landlord not allowing to sell. Now bldg in dilapidated condition. Landlord not contributing in repairs. Bldg people got a contractor, broke one side wall of my aunt's house, now realized that even flooring is weak. And tenants were told that entire bldg needs repairs. So, work is just left there. Mhada ready to contribute only some part n remaining to be given by tenants. My aunty was not for repairs as she cannot afford. Now what can be done? Her wall is broken, and she cannot stay. Pls advise, further course of action.

Answers (2)


235 votes

where redevelopment is concerned, very often, in the island city particularly in olden parts, there’s reference to pagdi properties. The consideration paid to a landlord as a fine, premium or consideration (pagdi) has been legalized 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 ilto the landlord to affect the transfer of tenancy or assignment. If one wants to sell his home for Rs 9 lakhs, he will have to pay Rs 3 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.
Sec. 56: Rights of Tenant and Landlord to receive lawful charges – Notwithstanding anything contained in this Act, it shall be lawful for:
1) The tenant or any person acting or purporting to act on behalf of the tenant to claim or receive an sum or any consideration, as a condition of the relinquishment, transfer or assignment of his tenancy or any premises;
2) The landlord or any person acting or purporting to act on behalf of the landlord to receive any fine, premium or other like sum deposit or any consideration on respect of the grant, or renewal of a lease of any premises, or for giving his consent to the transfer of a lease to any other person.
3.She can also approach the court showing the condition of the building and the plans approved by mahada for the building being in bad condition an ask the landlord to take necessary steps


Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

73 votes

The builder or the landlord is required to pay the repair and maintenance costs. Thus, your aunt can file a case for the same or she can make the necessary repairs and claim the maintenance cost from the landlord.

Popular Property Lawyers


Advocate H Gouri Shankar
Dilsukhnagar, Hyderabad
23 years Experience
Advocate Rajesh Rai
Sector-19, Dwarka, Delhi
19 years Experience
Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
32 years Experience
Advocate J. P. Rinwa
Swej Farm, Sodala, Jaipur
18 years Experience

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Property Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or contact a Lawyer of your choice to address your query in detail.

Related Questions


"LawRato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."



Related Articles