Mumbai To Be Freed From Century-Old Pagdi System

Mumbai’s housing landscape is set for a major transformation as Deputy CM Eknath Shinde declared that the city will be freed from the pagdi system. Introduced decades ago, the system allowed tenants to pay a lump sum to landlords for occupancy rights while continuing to pay nominal rent. Over time, this arrangement created deep-rooted disputes, stalled redevelopment projects, and left thousands of old buildings in unsafe conditions.  

Key highlights from the announcement include  

• More than 19,000 rent-controlled buildings in Mumbai are classified as pagdi properties, most built before 1960.  
• The system has troubled landlords, who receive negligible rent, and tenants, who face uncertainty during redevelopment.  
• Shinde announced a separate regulatory framework to accelerate redevelopment and safeguard both tenant and landlord rights.  
• The move aims to reduce risks of building collapses and improve housing safety in the city.  
• Experts note that redevelopment under the new framework will stimulate Mumbai’s real estate sector and modernize housing stock.  
• Tenants will benefit from legal clarity and protection, while landlords will gain fairer compensation and redevelopment opportunities.  
• The decision is described as “historic,” marking a step toward resolving decades-old disputes in Mumbai’s housing market.  

The pagdi system, once seen as a solution for affordable housing, has become a source of tension and inefficiency. With redevelopment stalled for decades, many structures remain dilapidated, posing risks to residents. The new framework promises to balance tenant protection with landlord interests, while unlocking Mumbai’s real estate potential.  

This landmark decision reflects the government’s commitment to modernizing urban housing and ensuring safety for millions of residents. By addressing the flaws of the pagdi system, Mumbai is poised to enter a new era of redevelopment and urban renewal.  

Sources: Financial Express, Free Press Journal, News18, India Today, Hindustan Times