Maharashtra's New Pagdi Law: Balancing Rights, Boosting Mumbai Redevelopment

• Maharashtra will introduce a new regulatory framework for Mumbai's 'Pagdi system' to protect tenants and landlords and facilitate redevelopment.
• The Pagdi system is a historical tenancy model where tenants pay a large premium for lifelong rights and extremely low, controlled rent.
• Under Pagdi, tenants often had resale rights and a share in ownership, but landlords lacked funds for maintenance due to negligible rent.
• The new framework aims to balance rights, grant tenants ownership in redeveloped properties, and provide landlords fair compensation to overcome redevelopment stalemates.
• This initiative seeks to boost real estate, provide legal clarity, and address Mumbai's housing crisis by transforming old, dilapidated Pagdi buildings.

Why It Matters: New law balances Mumbai's Pagdi system rights, boosting redevelopment and housing.