• Occupying pagdi system house from past 40 years with no name

Hello, 

I have a query regarding my house. Any guidance from you is highly appreciated. 

We live in Mumbai in a *pagdi* system building. We have a house. This house was bought by my grandfather from the past tenants. But due to lack of knowledge in those days, no proper documentation and transfer was done. Hence, the property was bought in cash and they (my grandfather) occupied the house since then. 

And now the house is occupied by my family (myself n my father after the death of my grandfather) since the last 40 years. Now due to expanding family, we are in need of selling this house and moving to suburbs. However, we are unsure about our legal position in this case and the way in which to approach it. i.e. How do we approach the landlord and what are my legal rights and what are his. What amount can he demand from us to transfer the property. 

To provide a better understanding, here are the documents that are in our name (my father's name) :

1.Electricity bill
2.Passport 
3.Aadhar
4.Gas bill

And the following are in the name of the earlier tenant:

1. Rent receipt chalan (which we still pay monthly by cash) 

Can the esteemed lawyers please give a rough guidance as to what position we are in. Anyone who has faced/facing the same issue, if you can pitch in, that would be highly helpful. 

Also would like to know that if we continue living in the said house by keeping possession intact would be better or what would be our situation if the building goes for redevelopment.

Waiting for your guidance, 

Warmly, 
Phiroze Lakhani
Asked 7 years ago in Property Law
Religion: Muslim

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4 Answers

1) obtain rent receipts form landlord in your name

2) pay rent by cheque

3) don't vacate the house at present

4) in case building goes in for redevelopment flat would be given to tenant in whose name rent receipt is issued

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

1. In absence of any registered sale deed your position in the proeprty is like a tenant only.

2.Now if the landlord wishes he can execute a fresh sale deed but he is likely to demand more money forthis.

3.So if you agree then you can put forward such proposal.

4.Otherwise you will continue to have tenancy rights over the proeprty and enjoy its possession.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

The Pagadi system is a pre-existing rental model which can be still found in many parts of India. It is similar to most of the renting systems but there is one very important factor which differentiates this from other renting systems, which is that the tenant becomes a part owner of the house (Excluding the land)

In this system the only deviating factor is that the tenant becomes a part owner of the house and not of the land. This tenant continues to pay rent to the owner as long as he is not sub-renting the premises. Additionally, the tenant has the option to sell the said property while giving a percentage of the gross amount to the owner. This percentage varies from anywhere between 30-50%.

under section 15 d)on the death of the tenant, the members of the tenant's family, who were residing in the premises would be deemed to be tenants. So after your Grand father’s death your father staying in said pagdi room as a legal heir and he deemed to consider as tenant.

Don't vacate the house at present ,keeping your possession.Obtain rent receipts form landlord in your father's name.

Redevelopment of the property :

There are three parties involved when redevelopment of the property is considered – owner, tenant and builder/developer. As the landlord holds the records of the property, he possesses complete ownership to sell the property. Once the property is redeveloped by the builders/developers, the landlord takes the profit out of the property at once and permanently. Once the profits are withdrawn, the landlord has no authority over the property. The tenants who are in possession of the said flat/property after the redevelopment becomes the sole owner of the property.

Ajay N S
Advocate, Ernakulam
4080 Answers
111 Consultations

5.0 on 5.0

The evidences in yor possession would be sufficient to prove your continuous tenancy.

No doubt you are protected by tenancy rights, but in the absence of proper transfer of the rental agreement your case may appear weak.

Whether Pagdi system or otherwise, a tenant is a tenant till the end and he cannot become the owner of the property.

Under this pagdi system, if at all you want to sell the property to a third person, you have to involve the landlord and the prevailing rate in Mumbai is 33% of sale consideration is to be given to the landlord for smooth transfer.

You may negotiate and look for an amicable settlement to avoid unnecessary legal hassles.

In the event of redevelopment you people for having stayed there continuously, may have an upper hand.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

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