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Pagdi Rules Reforms
December 15 , 2025
7 days
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- Maharashtra has introduced a new law to dismantle the century-old Pagdi system in Mumbai.
- The Pagdi system, dating before India’s Independence, allowed tenants to pay a one-time premium for near-permanent occupancy at very low rents.
- Over time, the system caused building deterioration, stalled redevelopment, and led to legal disputes.
- The new framework provides tenants with clearer rights or ownership stakes in redeveloped properties.
- Landlords may receive fair compensation, revised rents, and redevelopment benefits to make projects viable.
- The law aims to reduce litigation, bring transparency, and accelerate the redevelopment of ageing Pagdi buildings.
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