• Inheritance under pagdi system

My father bought a shop space of approx 250 sqft on paghdi system 50 yrs back in 1964, in Mumbai, for which he paid a paghdi of Rs10,000/- and a rent of Rs 100/- per month. The rent was revised down the years to Rs 250/-, Rs 500/- and now at Rs 750/- per month. 

The shop is being used for business even today. 
But my father has grown old, now that he is 86 years of age but he still attends the shop with some help from me. 

My question is, in the event of my father's demise will I automatically inherit the property? 

Is it advicable to convert this rented paghdi system property into ownership? 

If so then how much money will have to be paid to the landlord?

There is some suggestion and some pressure from other tenants of the building, themselves having done it, to convert the premises to ownership by paying the landlord off.

Is it wise to keep the property paghdi system rental rather than converting it to ownership?
Asked 5 months ago in Property Law from Mumbai, Maharashtra
Religion: Hindu
1) it is in your interest to convert tenancy rights into ownership by making payment to landlord 

2) on father demise you along with your mother and siblings would be legal heirs 

3) landlord may demand one third of market value for conversion 
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
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My question is, in the event of my father's demise will I automatically inherit the property?

Your father no doubt is protected by tenancy rights but he cannot transfer the tenancy rights to his sons or wards during his lifetime.  Instead he can talk to the landlord for arranging to enter into a fresh agreement with you while he terminates his tenancy, this can be on some compromised agreements.






Is it advicable to convert this rented paghdi system property into ownership? 

Please remember that a tenant is always a tenant, if you want to convert it into ownership you have to talk to the landlord about it and negotiate the terms accordingly.






Is it wise to keep the property paghdi system rental rather than converting it to ownership?

It depends on the prevailing circumstance and the situations you are forced to face now.
If the rates quoted are very high and not affordable you may continue with the existing system for the time being.
T Kalaiselvan
Advocate, Vellore
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127 Consultations
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1. After your father's demise the rent receipt will be transferred to your name by the landlord if you apply for it. Appropriate orders can be sought from the small causes court if the landlord does not do this.

2.  For the transfer of tenancy, 33 per cent of the amount in transaction is paid in cash to 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. 
Ashish Davessar
Advocate, Jaipur
18061 Answers
447 Consultations
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