Mangal Prabhat Lodha proposes pro-pagdi tenants bill

BJP MLA Mangal Prabhat Lodha will bat for ownership title of tenants residing under the erstwhile pagdi system. Mr Lodha has proposed the introduction of a private bill in the upcoming Assembly session to amend the Rent Control Act, 1999.

The state government’s move in January to amend Rent Act became controversial after stakeholders (tenants) had opposed the decision to charge rent according to the prevailing market rates for residential tenants living in spaces above 847 square feet and commercial tenants in spaces above 540 square feet, both under the pagdi system.

After chief minister Devendra Fadnavis’ intervention, the state government backed off from amending the Act. However, the action committee for the protection of tenants had since then demanded to not only take back the amendment, but to also ownership to pagdi tenants.

“According to the proposal, the state government should grant ownership to the pagdi tenants in exchange for them paying 100 months’ rent in advance,” said Mr Lodha.

According to Mr Lodha, pagdi tenants have been residing for many years in structures that are mostly dilapidated and their redevelopment hasn’t happened due to differences between tenants and landlords. By such a move, tenants would be granted ownership and they could opt for redevelopment.

However, a senior BJP MLA termed the proposal ‘builder-friendly’. He said, “Just because Mr Lodha is in the business of construction he is proposing such a bill. The matter of granting ownership to pagdi tenants has been in Supreme Court for the past 28 years and how can a private bill ask the government to or the state government amend the Rent Act when it is already sub judice ”

A similar proposal was made around 30 years ago wherein pagdi tenants could come together pay 100 months’ rent in advance and get ownership. The proposal also included forming a society with 70 per cent consent to opt for redevelopment. However, the city-based property ownership association of landlords had moved court challenging the move.

BJP MLA Raj Purohit said the issue could not be solved by introducing private bills. “The matter is in Supreme Court and the issue of granting ownership to pagdi tenants without giving equal representation to landlords will create controversy. We cannot solve the issue by introducing private bills,” said Mr Purohit.

What is the Pagdi system Pagdi system is an erstwhile system in the city where a house is said to be pagdi when it has a landlord and a tenant, not unlike regular renting. However, under this system the tenant is the part owner of the house and the rights of the land where the house is located belongs to the landlord. In case a tenant wants to sell the house he/she will have to pay the premium of 33 per cent out of the total value of house to the landlord.