• Property under the Pagdi system

Hello,

We are a secular family with parents and three daughters.

My family moved in as tenant in the year 1982, and since then have been living in the same flat. The flat has been rented out to us under Pagdi system.

The flat agreement was on my father’s name, and after his demise, the tenancy was transferred on tomy mother’s name easily , so basically she is now the legal tenant of the flat as she has been liable to pay all the fees and taxes.

All the three girls are married and do not live with their mother. In fact two of her daughters live abroad. 

In this scenario, I wish to know the following:

1) In the event of my mother's demise, do we again need to purchase the property or pay 33% of the property's current value to our landlord just so that we can continue to be the tenants of the same flat under Pagdi system?

2) Will one of us have to live in the flat to retain the flat, as we do not wish to sell the flat because it can be a place to stay over when my sisters and their families visit India and neither of us stay there as we are living with our families? Can the property be transferred on to our names easily, as it was transferred to my mother during my father’s demise.

3) Even though my mother has made a ‘Will’, where she has stated the right of the property to all 3 of us equally after her death, can the landlord forcefully consider the property as his own, if we fail to repurchase the property or if we fail to pay him 33% of the current property value?

4) Can we just not get the name transferred from my mother to us free of cost ( by saying that she is gifting the flat to us), when I say free of cost without paying 33% of the current property value to the landlord. Will we face any kind of problem from the landlord regarding transferring the property to us after my mother passes away? If yes, should this transferring be done before her demise?

5) If none of the above options are possible, can my mother sell the property to all 3 of us by paying 33% to the landlord.

6) Is there anyway, that I can convert the pagadi into ownership?

Please guide us, as we are not sure about the rights as tenants. We are really worried that we might lose our flat after my mother’s death.

Thank you for your help in advance.
Asked 1 year ago in Property Law from United States
Religion: Hindu
1) tenancy rights cannot be bequeathed by will . 

2) on demise of your mother application should be made to landlord to transfer tenancy rights in favour of the daughters 

3) in the event landlord refuses to transfer tenancy right legal heirs will have to move court and obtain orders from court 

4) for conversion of pagdi flat into ownership approach the landlord 
Ajay Sethi
Advocate, Mumbai
23328 Answers
1220 Consultations
5.0 on 5.0
Section 15 of the Maharashtra Rent Control Act, 1999
defines the tenant thus:
“tenant” means any person by whom or on
whose account rent is payable for any
premises and includes-
(a) such person, -
(i) who is a tenant, or
(ii) who is a deemed tenant, or
(iii)who is a sub-tenant as permitted under
a contract or by the permission or
consent of the landlord, or
(iv) who has derived title under a tenant, or
(v) to whom interest in premises has been
assigned or transferred as permitted,
by virtue of, or under the provisions of,
any of the repealed Acts;
(b) a person who is deemed to be a tenant
under section 25;
(c) a person to whom interest in premises has
been assigned or transferred as permitted
under section 26;
(d) in relation to any premises, when the tenant
dies, whether the death occurred before or after
the commencement of this Act, any member of
6
the tenant's family, who,-
(i) where they are let for residence, is residing,
or
(ii) where they are let for education, business,
trade or storage, is using the premises for any
such purpose,
with the tenant at the time of his death, or, in
the absence of such member, any heir of the
deceased tenant, as may be decided, in the
absence of agreement, by the court.”
Ajay Sethi
Advocate, Mumbai
23328 Answers
1220 Consultations
5.0 on 5.0
1) In the event of my mother's demise, do we again need to purchase the property or pay 33% of the property's current value to our landlord just so that we can continue to be the tenants of the same flat under Pagdi system?
One among the mother's legal heirs can succeed in having tenancy on their name by obtaining NOC from other heirs.   The percentage will depend on the prevailing rate.


2) Will one of us have to live in the flat to retain the flat, as we do not wish to sell the flat because it can be a place to stay over when my sisters and their families visit India and neither of us stay there as we are living with our families? Can the property be transferred on to our names easily, as it was transferred to my mother during my father’s demise.
It is not advisable to keep the  flat vacant under  lock and key for a longer time because this may attract attention of the devil's brain to hatch some evil design to grab it. 

3) Even though my mother has made a ‘Will’, where she has stated the right of the property to all 3 of us equally after her death, can the landlord forcefully consider the property as his own, if we fail to repurchase the property or if we fail to pay him 33% of the current property value?
Your mother cannot execute a Will to the tenanted property, she has no rights over the property as she is not owning the property and the title is not in her name.   If there is any will to this effect, it will be invalid in the eyes of law. She can bequeath the  property only  on which she is having marketable title through a will. 


4) Can we just not get the name transferred from my mother to us free of cost ( by saying that she is gifting the flat to us), when I say free of cost without paying 33% of the current property value to the landlord. Will we face any kind of problem from the landlord regarding transferring the property to us after my mother passes away? If yes, should this transferring be done before her demise?
You have to observe the legal formalities properly, you cannot get the property transferred in your name.

5) If none of the above options are possible, can my mother sell the property to all 3 of us by paying 33% to the landlord.
It may not be possible.


6) Is there anyway, that I can convert the pagadi into ownership?
It will be possible if he owner agrees to sell the property to you. 
You are still protected by tenancy rights, consult a local lawyer and move further legally. 
T Kalaiselvan
Advocate, Vellore
14138 Answers
127 Consultations
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