A.
Dear Client,
The Pagdi system is a legalized form of tenancy under the provisions of the Maharashtra Rent Control Act, 1999. The Pagdi system provides tenants with the security of tenure, allowing them to occupy the property indefinitely. The residual legal heirs of the original Tenants are entitled to have the Tenancy transferred in their names. Tenancy rights are inherited by family members who were residing with the tenant at the time of their death. Section 7 (15) (d) of the Maharashtra Rent Control Act, 1999, clarifies the rights of legal heirs in the Pagdi system and states that: 1) A tenant’s family member who has been living with the deceased tenant at the time of his/her death shall be eligible first from the family as the successor to succeed the tenancy. 2) Upon the demise of a current page tenant, the tenancy rights can only be transferred to that legal heir(s). 3) The new tenant (legal heir) can request the landlord to issue a fresh rent receipt in the heir(s) name(s). Once the Pagdi amount is paid, the tenant becomes the owner of the property and has the right to live in it. The landlord cannot evict the tenant or repossess the property, as long as the tenant continues to pay the monthly rent. Transferring ownership in the Pagdi system requires a tripartite agreement between the landlord, the outgoing tenants. This tripartite agreement ensures that all parties agree on the terms, including the payment of the Pagdi or premium to the landlord. Once such a tripartite agreement is executed between the parties, the landlord shall issue the rent receipt in the name of the new tenant. The landlord's consent is crucial in transferring Pagdi rights, as it is a transfer of tenancy. an NOC (No Objection Certificate) from the BMC (Brihanmumbai Municipal Corporation) is not required for the sale of a Pagdi flat in Mumbai because BMC's role is related to building regulations, not the transfer of tenancy rights.
Posted On 03-Jul-2025
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