Maharashtra's Pagdi Law: New Framework for Mumbai Redevelopment & Rights

• Maharashtra announced a new regulatory framework to address Mumbai's Pagdi system and facilitate redevelopment.
• The Pagdi system is an old rental arrangement where tenants pay a premium for near-lifelong occupancy rights and extremely low, controlled rents.
• It led to issues like landlords' financial losses, stalled redevelopment of old buildings, black money transactions, and uncertain tenant rights.
• The new framework aims to balance tenant and landlord rights, provide tenants with ownership stakes, and incentivize redevelopment.
• This initiative is expected to boost Mumbai's real estate sector and help alleviate the city's housing crisis by redeveloping old, unsafe homes.

Why It Matters: Maharashtra's new law reforms Mumbai's Pagdi system, balancing tenant/landlord rights for redevelopment.