Maharashtra Deputy Chief Minister Eknath Shinde on Thursday announced a new regulatory framework to redevelop Mumbai's "Pagdi" buildings, calling it a "historic decision" aimed at eventually making the city free of such properties.
Shinde, who holds the housing portfolio, made the announcement in the legislative assembly.
Pagdi is a traditional tenancy rental model, where the tenant is part-owner of the house, enjoys nominal rental rates and also has both subletting and selling rights of the property.
Shinde said Mumbai has over 19,000 cessed buildings, commonly known as Pagdi buildings, most of them built before 1960.
While some of these buildings have undergone redevelopment, several have collapsed, and nearly 13,000 are still awaiting reconstruction. Tenants in these structures enjoy protection under the Maharashtra Rent Control Act, while landlords claim they do not get fair compensation because of tenants' extensive rights, he said.
"The redevelopment of Pagdi buildings has received poor response because of legal disputes and structural complexities. A fair and balanced framework that protects the rights of both tenants and landlords is essential," Shinde said.
He noted that for tenants from economically weaker sections and low-income group, Floor Space Index (FSI) incentives alone are not enough, and the government will ensure the full reconstruction cost of their existing homes is covered. A separate set of rules will be drafted for this purpose.
Key provisions under the proposed rules include that tenants will receive FSI equal to their current occupied area, landlords will receive FSI corresponding to their land-ownership entitlement, economically weaker and low-income Pagdi occupants will be given incentive FSI to cover free reconstruction.
If height or other restrictions prevent utilisation of full FSI, the remaining balance will be provided as Transferable Development Rights (TDR).
Shinde said the move will expedite redevelopment of old buildings, prevent collapses and reduce loss of life and property. Existing options, such as regulations 33 (7) and 33 (9) will continue, but the new framework will offer an additional route for buildings that have not benefited so far.
The deputy CM said nearly 28,000 cases between tenants and landlords are pending in small-cause courts, delaying redevelopment for decades. The government will, with the high court's approval, set up additional fast-track courts to dispose of these cases within three years.
"This initiative will finally pave the way for lakhs of Mumbai residents living in Pagdi buildings to get ownership-based homes. Neither tenants nor landlords will face injustice. The government is committed to resolving any further hurdles," Shinde said.
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