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Maharashtra introduces framework to ease redevelopment of Pagdi system buildings

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Maharashtra's Pagdi system grants tenants long-term occupancy rights through a one-time premium and minimal ongoing rent, while landlords retain legal ownership. Tenants under this arrangement are strongly protected by the Maharashtra Rent Control Act, 1999. Redeveloping older properties governed by this system has historically been difficult, frequently hampered by disputes between landlords and tenants. To address these challenges, the state government has introduced a new policy framework designed to simplify the redevelopment process. The framework includes special Floor Space Index incentives and improved dispute resolution mechanisms to accelerate stalled projects.

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