Deputy Chief Minister Eknath Shinde Thursday made a historic announcement in the Legislative Assembly through a statement, declaring that a separate regulatory framework will be created to free Mumbai from the pagdi system and to ensure fair and proper redevelopment of pagdi buildings. He also stated that the rights of both tenants and landlords will be protected.
Deputy Chief Minister Shinde said that approximately more than 19,000 cess buildings are known as pagdi buildings. These are pre-1960 buildings. Some of these buildings have already been redeveloped, some have deteriorated and collapsed, while nearly more than 13,000 buildings are still awaiting redevelopment. The tenants in these buildings are protected under the Maharashtra Rent Control Act. These buildings, the tenants, and their agreements are all legally valid. The government has provided protection to the tenants through the Rent Control Act in their interest. Landlords often complain that due to the tenants' rehabilitation rights, they do not get fair compensation for their ownership. Numerous disputes between tenants and landlords are pending in small-cause courts. As a result, redevelopment of pagdi buildings receives very little response.
Proper and fair redevelopment of pagdi buildings is necessary. For that, it is also essential to protect the rights of both tenants and landlords. For economically weaker sections and low-income groups, granting FSI alone is not enough — provisions must also be made for the cost-free reconstruction of their homes. For this purpose, a separate regulatory framework will be created, he added.
New Provisions to Be Introduced
He said that the new rules will include provisions such as granting FSI equivalent to the area occupied by the tenants, granting the original FSI to landlords based on land ownership, and providing incentive FSI required for the cost-free reconstruction of the homes of pagdi holders from economically weaker and low-income groups. If, for any reason — such as height restrictions or other limitations — it is not possible to use all three types of FSI entirely, the remaining FSI will be made available in the form of TDR.
This regulatory framework will clear the way for the redevelopment of old pagdi system buildings. It will prevent the collapse of dilapidated buildings and thus avoid loss of life and property. Existing redevelopment options such as 33(7) and 33(9) will continue to remain available. For buildings that have not yet benefited from these schemes, this will serve as a new option.
Fast-Track Courts to Be Established
Additionally, about 28,000 disputes between tenants and landlords in these buildings are currently pending. Many families have been stuck in litigation for decades. To accelerate redevelopment, these disputes must also be resolved. With the prior approval of the High Court, adequate additional fast-track courts will be established to dispose of these cases, with the expectation that all cases will be resolved within the next three years. This scheme will provide ownership homes to lakhs of Mumbai residents living under the pagdi system. Importantly, neither tenants nor landlords will face any injustice. Deputy Chief Minister Shinde assured that if any further difficulties arise in this process, the government is committed to resolving them.
