Landowner has to issue notice to builder to pay the lease rentals
2) you are only a tenant and not owner of building .you have to pay rentals to builder
3) you can approach builder to convert it into ownership and then pay lease rentals to landowner
Tenant rights in a pugree building build by a builder based on leased land taken from landowner
I live in a building which was purchased by my father, by paying around 80000/- to builder in 1984 in Thane (maharashtra) under the Pugree system and we have been paying nominal rent (increased slightly every year) to the builder. Now the land owner has sent us notice that builder had taken the land on lease from them for around 60 years and the lease has expired in around 2020 and the Builder has defaulted on paying lease amount to the land owner. So land owner has asked us to pay the lease amount defaulted by builder as also pay further rent as per discussion or pay lumpsum amount and get the building converted to ownership, but the land rights will still persist with the landowner. Property tax for building comes in the name of the builder and property tax reflects the landowner name. Since it is a pugree property, the electricity connection reflects our name. Now the issue is pugree rent should be paid to builder or land owner? Also can we enter into agreement with landowner directly without involving the builder?
Asked 1 year ago in Property Law
Religion: Hindu
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10 Answers
lease term of builder with landowner is over in 2022 and land owner has said he is not going to renew lease to builder. So landowner has instructed us to get into agreement with him and he will provide a ownership agreement to us. in lieu of that, the builder will talk to Landowner to give up his rights in building by taking some mutually fixed amount.
Asked 1 year ago
If builder has agreed then you can enter into agreement with land owner
As on date, Builder’s lease with landowner has expired and therefore builder does not have any lease agreement with the landowner. So landowner is asking us to get into agreement with them directly ditching the builder. So in case builder doesn’t agree to the payment which the land owner will be giving them to relinquish their rights, can tenant ditch any one of the parties (builder/landowner) and get into agreement with the other. Alternately can the landowner ask us (pugree tenants) to vacate the room, since the lease agreement of landowner with builder has expired.
Asked 1 year ago
Your agreement is with builder only
you can surrender your tenancy
landowner has to obtain vacant possession from builder on expiry of lease period
then enter into fresh agreement with landowner
So in short, if landowner states that they wont renew the lease with the builder and gives two options to pugree tenant, either get into lease agreement with them or vacate the premises, what are the options available with the tenant.
Asked 1 year ago
Landowner has to settle with builder
land owner does not have physical possession
Landowner has to sue the builder to recover possession
you have to surrender premises to builder
The builder has taken the property on lease from the landowner hence the builder is liable to answer to the landowner and also the landowner has to give notice to the builder alone and not to the tenants.
However since you have been paying the rental amount to the builder you may continue to pay the same and if at all the builder is consenting to have a rental agreement with the landowner directly then you can proceed otherwise it is better you continue the present arrangement
Basically you had entered into a rental agreement with the builder and not with the landowner hence determination of tenancy will be decided by the builder , however if the builder is agreeing for the arrangement for a fresh rental agreement with the landowner directly then you may consider the decision after consulting a local lawyer.
The risk for the tenant is that if you take a decision against the builder then the builder may take revenge against you and direct you to vacate because it is he who had entered into the rental agreement with you.
Thus the builder may use you as a scapegoat to resolve his personal vengeance against the landowner
You may decide further course of action if there is an amicable settlement between the land owner and the builder and about continuing the tenancy also.
Since you are the pagri tenant, it will be difficult for the landowner to get you evicted.
You just wait for the developments between the landowner and the builder and take a decision based on the resolution between them.
You are a tenant of the builder though the landowner owns the property, so allow the landowner to sue the builder and based on the developments in favor of the landowner you can decide to turn on the side of the landowner
Dear Client,
As a tenant under the Pugree system in a building in Thane, Maharashtra, purchased by your father in 1984, you are now facing issues due to the expiration of the builder's lease with the landowner. Given the situation, you need to decide on several key points.
First, regarding the payment of rent, since the builder's lease with the landowner has expired and the landowner has issued a notice, it is appropriate to start paying the rent or any agreed-upon amount to the landowner directly, as they now have the overriding legal interest in the property.
Second, you can consider entering into an agreement directly with the landowner, bypassing the builder. This is especially pertinent since the landowner has expressed an intention not to renew the lease with the builder and is willing to provide you with an ownership agreement. Ensure that any agreement with the landowner includes clear terms about the conversion to ownership and the handling of the land rights.
Third, if the builder does not agree to the landowner's terms for relinquishing their rights, you, as a tenant, should prioritise legal clarity and the long-term security of your tenancy. Entering into an agreement with the landowner directly can provide this security. However, ensure that this agreement is legally binding and considers any potential claims the builder might have.
Lastly, if the landowner insists on vacating the premises unless you enter into a lease agreement with them, you should seek legal advice to fully understand your rights and options. The landowner does have the legal right to renegotiate terms with you directly since the builder's lease has expired.
In summary, your options include paying rent to the landowner, negotiating an ownership agreement with the landowner, and potentially bypassing the builder if they do not cooperate.
- Since, the possession was came to you through the builder , then you are accountable to pay rent to the builder and not the landowner.
- Further, if the lease already expired between the landowner and the builder then the landowner can collect rent from you after sending a notice.
- However, if the landowner is going to renew the lease then you should wait for the same , and even can pay the rent to the landowner after taking a declaration that this amount must be adjusted towards the rent of the builder
- Further, for the default of the builder to pay to the landowner , you are not under obligation to pay the same, if you was paying rent to the builder.
- Further, if there is no renewal with the builder then you can enter into a afresh agreement with the landower
- However the landowner cannot vacate you on this ground legally.
