How to sell property in pagdi system

07-Apr-2023 (In Property Law)
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 (4)

Answer #1
190 votes

Under the Pagdi system in Maharashtra, the tenant is typically responsible for the maintenance and repairs of the rented premises, as they are the ones occupying and using the property. However, if there are major structural repairs or issues that need to be addressed, the tenant can seek assistance from the landlord.

If there is a need for repairs, the tenant should first inform the landlord about the issue and request them to take action. If the landlord and tenant have entered into an agreement that provides for the maintenance and repairs of the rented premises, the tenant can seek repairs under the terms of the agreement. If the landlord fails to carry out the necessary repairs, the tenant may have legal recourse under the provisions of the Rent Control Act or the Small Causes Court in their jurisdiction to file a complaint.

Additionally, under the Maharashtra Rent Control Act, 1999, tenants are entitled to basic amenities, including repairs, and can file a complaint with the Rent Control Court if the landlord fails to provide such amenities. The Rent Control Court can order the landlord to carry out the necessary repairs or provide compensation to the tenant.

They may also seek assistance from local tenants' associations or legal aid organizations for advice and support.

It is important to note that the Pagdi system is not legally recognized, and therefore, tenants may face difficulty in seeking redressal for disputes or issues. It is recommended that tenants enter into a written agreement with the landlord and keep copies of all documents related to the lease, including receipts for any payments made, in order to protect their rights and interests.

Answer #2
749 votes
Hiii, As per Maharashtra Rent Control Act, the duty to keep the tenanted premises in good condition is on the Landlord/Owner. As per S.79 of the MHADA Act, the duty to repair/reconstruct the dilapidated MHADA Building is on MHADA. So, all the Tenants needs to form an association and approach MHADA under Chapter VIIIA for repairs or you need to approach the State Government for reconstruction. You can also seek directions against the Landlord for repairs in Small Causes Court.
Answer #3
632 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.
Answer #4
907 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

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 and has been responded by one of the Divorce Lawyers at to address the specific facts and details.

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