Pagdi System to Be Abolished in Mumbai

  • On 12th December 2025, Maharashtra Deputy Chief Minister Eknath Shinde announced that a separate regulatory framework will be created to free Mumbai from the Pagdi system and ensure proper redevelopment of buildings associated with it.
  • The framework will safeguard the rights of both tenants and landlords.
  • The Pagdi system is a historic tenancy arrangement prevalent mainly in Mumbai before the 1940s and is legally protected under the Rent Control Act.
  • Under this system, tenants paid a large lump-sum premium (Pagdi) to landlords in exchange for near-lifelong rights over the property.
  • Rents remained extremely low and controlled for decades, making them ....
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