Mumbai's Pagdi System: New Law to Unlock Redevelopment, Benefit Tenants & Owners

• The 'Pagdi System' in Mumbai is an old rental model where tenants pay a large premium and low rent, gaining semi-ownership but leading to dilapidated buildings due to landlords' inability to afford maintenance.
• Maharashtra government is introducing new rules to redevelop over 19,000 old 'pagdi' buildings, aiming to resolve long-standing disputes and make Mumbai 'pagdi-free'.
• The new regulations aim to protect both tenants and landlords: tenants will receive new, equally sized flats (some gaining ownership), while landlords will get fair compensation and clear development rights.
• This initiative seeks to address the safety concerns of thousands living in dangerous, old structures, facilitating urban renewal in areas like South and Central Mumbai.

Why It Matters: Mumbai's new laws reform 'Pagdi system', boosting redevelopment & benefiting tenants/landlords.